Why defaults matter
An invisible force behind the decisions you make.
Over the years, Google has paid big bucks to ensure its search engine would be the default on our phones and web browsers. In 2021, the tech company shelled out a whopping $26.3 billion through revenue share deals.
These arrangements became a pivotal factor in the government’s antitrust case against the tech company, and the recent ruling that declared it a monopoly.
Here’s what U.S. District Judge Amit Mehta wrote in his decision:
Most users access a general search engine through a browser (like Apple’s Safari) or a search widget that comes preloaded on a mobile device. Those search access points are preset with a “default” search engine. The default is extremely valuable real estate. Because many users simply stick to searching with the default, Google receives billions of queries every day through those access points.
Google’s big payments and Mehta’s ruling show the power of defaults.
Which search engine will you use? Which candidate will you vote for? Where will you order that new book from? Where will you shop for clothes? Research tells us that when one of the options is already in place as a default, you’re more likely to choose it.
The power of the default.
In a foundational study published in 1988, undergraduate and MBA students were asked to make theoretical financial decisions using a questionnaire.
One group was given a list of portfolio options to choose from. An experimental group’s questionnaire was similar, except for one key difference—it said they were already investing in a specific company, and could decide to keep investing in it. In other words, the experimental group had a default.
Researchers found that when a default was present, the students favored it. This behavior is known as status quo bias. Essentially, when you’re given options to choose from, you may be more prone to pick the thing you’re already doing if it’s seen as the default.
The study found status quo bias in other examples, too, like deciding on health insurance and retirement plans. My favorite example was this one, about an entire town that had to move and, instead of starting fresh, decided it wanted to keep its default layout:
Some years ago, the West German government under took a strip-mining project that by law required the relocation of a small town underlain by the lignite being mined. At its own expense, the government offered to relocate the town in a similar valley nearby. Government specialists suggested scores of town planning options, but the townspeople selected a plan extraordinarily like the serpentine layout of the old town—a layout that had evolved over centuries without (conscious) rhyme or reason.
Once something becomes the status quo, it stands a higher chance of remaining in that spot even when alternatives emerge.
Today, defaults are everywhere in our lives. Shopping, emailing, messaging. Our phones and computers are filled with defaults. So, even if we find out about an alternative email service or grocery delivery company, we’re less likely to make the switch if we already have a strong default.
What are your defaults?
What can you do with this information? Here are three ideas.
First, take stock of your defaults. Look at your apps and the tools you use at work. It’s easy to forget that we have these defaults locked in place, even if they’re not the best options. You may realize that something isn’t working for you, but you’ve been sticking with it simply because it’s your default. On the other hand, maybe you discover that a default is working for you.
Second, when you’re making a decision about something, try to minimize the status quo bias. You can do this by thinking about all of the options equally. Imagine the default is no longer the default, but a possibility among others. This, researchers wrote, is maybe the best way to make better decisions that aren’t clouded by the status quo bias.
“…even if the bias is recognized, there appear to be no obvious ways to avoid it beyond calling on the decision maker to weigh all options evenhandedly,” they wrote.
Finally, when you’re adopting something new, like a new service, make the decision with defaults in mind. Is this service collecting data, requesting your location, or asking you to download an app in hopes of becoming your future default? If so, ask yourself: should it be?
Thanks for reading.
Eric
Very interesting, makes me think how iPhone is the default when it comes to phones. I wonder if this idea expands to social settings and even interpersonal relationships.
Great post! As a related topic, I've thought about a post decrying default settings in word processors. Sometimes tools work against their obvious uses.
If Word had Comic Sans as the default, either all of society would use it or it's the 1990's.