Algorithmic Default Bias and the Unintended Consequences of Regulatory Nudges

Hermansyah (2025) demonstrates that DMA-inspired choice screens can break default bias and increase competition in platform ecosystems. Yet, regulatory nudges can have “dark side” effects—users may develop new habits that entrench alternative forms of lock-in or exploitative behavior (e.g., switching for sign-up bonuses, then reverting). This research would use behavioral experiments and field studies to track how users respond to regulatory interventions, focusing on anomalies and perverse incentives that emerge over time. By surfacing and theorizing these unexpected outcomes, the project could refine our understanding of “second-order” effects in platform governance and help regulators anticipate and mitigate unintended consequences—crucial as global digital regulation rapidly expands.

References:

1. Breaking Default Bias: How Regulatory Choice Architecture Shapes Competition in Platform Ecosystems. Hermansyah (2025). Journal of law review.