Optimal default options

Previous studies of optimal default options demonstrate that either opt-out minimization or maximization is optimal under restrictive conditions. We obtain a general characterization of the solution by studying optimal defaults when one of the problem’s parameters approaches a limiting value. We interpret these “asymptotic optima” as approximate optima for non-limiting cases and justify this interpretation through numerical simulations. When the designer and choosers agree about the activity’s value, simple forms of weighted opt-out minimization are asymptotically optimal. Additional results encompass Pigouvian fees, normative ambiguity, and cases in which the designer and choosers disagree about the activity’s value. • A general characterization of the optimal default options is provided. • The method used involves studying asymptotic optima as approximations. • With no externalities, weighted opt-out minimization is asymptotically optimal. • The accuracy of the approximations is verified through simulations. • Extensions include cases with externalities, Pigouvian fees, and normative ambiguity.