Bill Dickens wrote:
>I have not read this paper, but I find the conclusions described in the
>abstract completely plausible. What does this say about the economists
>model of human behavior?
>
>"The Power of Suggestion: Inertia in 401(k) Participation and
>Savings Behavior" ...
>http://papers.ssrn.com/paper.taf?abstract_id=228155
>... Although none of the economic features of the plan
>changed, this switch to automatic enrollment dramatically
>changed the savings behavior of employees....
Seems suggestive of herding to me, which suggests that people
feel quite ignorant about appropriate savings levels.
It also suggests that most people might stay with social security
if it were made voluntary - at least for a while.
Robin Hanson [EMAIL PROTECTED] http://hanson.gmu.edu
Asst. Prof. Economics, George Mason University
MSN 1D3, Carow Hall, Fairfax VA 22030
703-993-2326 FAX: 703-993-2323
