Under a government initiative to boost national savings, a retail bank automatically sets up an emergency savings sub-account for all new current account holders, transferring 10 GBP per month from their main account unless they check a box to opt out.
An account holder who allows these transfers to continue without taking any action is most clearly demonstrating:
the cognitive bias of anchoring, where the 101010 GBP transfer acts as a psychological reference point.
the influence of choice architecture through a default option.
the application of a heuristic to simplify complex intertemporal consumption choices.
the effect of asymmetric information, where the bank possesses superior knowledge of savings benefits.
