Alphabeticity Bias

In a

recent research paper 

it was reported that the alphabetical listing of Fund choices affects the selections 401 (k) participants choose.

An example was provided in 401K Specialist magazine ( issue 2, page 7) listing 13 Funds alphabetically. They stated that renaming the 11th Fund listed from "Royce Pennsylvania Mutual" to "American Royce Pennsylvania Mutual" and thereby moving it 10 slots higher on the list would generate approximately 20% greater participation all else equal.