Abstract
Previous researches have demonstrated that consumer decisions could be affected by some biases in the supplementary pension field. Decision-making is very often not guided by reason, and in many cases, if forced to choose, people will decide not to decide, passively accepting the decisions made for them by others. Such behaviour deserves to be analyzed and studied in order to better understand its consequences, and determine whether the latter can be turned to the advantage of the decision-makers themselves. Using a database of 24 occupational pension funds representing 1,732,530 employees, this paper examines the presence of default bias and extremeness aversion in Italian workers’ choices regarding the supplementary pension system, as a result of the new rules enacted by the regulator in 2007. The results provide insights which are important for public policy as regards the possibility of taking account of these biases when formulating the regulations, with the aim of benefiting employees.
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