Essays on Nudges in Information Systems

Individuals increasingly make important decisions utilizing information systems. Behavioral economics research shows that aspects of a choice-making environment can influence individuals’ decision-making even though they have no impact on the rational elements of the decision. However, this perspective is under-studied in information systems research, which has primarily considered users to be rational actors. The purpose of this dissertation is to investigate how a particular design element of information systems impacts users’ decision-making in non-rational ways. The design element of interest is nudges, which are aspects of choice architecture that predictably alter decision-makers’ behavior without forbidding options or changing incentives. To date, the efficacy of nudges in IS has been understudied and the investigations that have been completed have been primarily empirical and lacking in theory. The three papers of this dissertation aim to 1) review and organize the existing fragmented IS nudge literature, 2) develop a deep theoretical understanding of a specific nudge type, and 3) empirically investigate this nudge type in a novel context with a theoretical foundation. Specifically, the first paper of this dissertation is a literature review that summarizes the role nudges have played in extant IS literature, analyzes theoretical inconsistencies in the existing research, and provides methodological and theoretical guidance for future IS researchers investigating nudges. The second paper builds on the first by delving into the many competing theoretical explanations for a specific type of nudge: the default nudge, which is a choice that will be selected if the decision-maker does not actively choose. The final paper utilizes work from the first two projects to empirically investigate how default nudges affect decision-makers’ charitable donations online. This empirical work helps to tease apart conflicting theoretical explanations and predictions to unpack what is currently a black box regarding how and why digital nudges impact behavior. It helps us understand charitable donation decision-making by incorporating social value orientation, defaults, and proximity of social norms and using both animation and real-time personalization to capitalize on attributes of the IT artifact. Overall, this dissertation enriches our understanding of nudges in general, but specifically in the context of information systems. The work contributes to future research on IS design and improves our understanding of decision-making online.