Do nudges increase consumer search and switching? Evidence from financial markets

Abstract As nudge interventions have become more popular, academic research is developing that assesses to what extent these are effective. My paper contributes this stream of research: collating and synthesising evidence on the effectiveness aim increase consumer search switching in retail financial markets. Following a systematic strategy, I identify 35 relevant papers, including qualitative studies, laboratory experiments, field experiments ex post analyses, covering range products different types nudges. The review results two main contributions. First, it demonstrates study designs serve purposes accumulation. Second, based over 400 estimates extracted from establishes currently available shows nudges markets by 2–3 percentage points average. Structural change choice architecture profoundly higher impact than provide, simplify or highlight information. While may be efficient cost–benefit basis can lead large relative terms (e.g. doubling rates 1% 2%), regulators cannot expect them significantly alter behaviour.