Status Quo Bias In Decision Making

Abstract (via Richard Zeckhauser)

Most real decisions, unlike those of economics texts, have a status quo alternative – that is, doing nothing or maintaining one’s current or previous decision. A series of decision-making experiment shows that individuals disproportionately stick with the status quo. Data on the selections of health plans and retirement programs by faculty members reveal that the status quo bias is substantial in important real decisions. Economics, psychology, and decision theory provide possible explanations for this bias. Applications are discussed ranging from marketing techniques, to industrial organization, to the advance of science.

Click Here To Read: Status Quo Bias In Decision Making

About Miguel Barbosa

I run this site.

14. August 2010 by Miguel Barbosa
Categories: Behavioral Economics, Curated Readings | Leave a comment

Leave a Reply

Required fields are marked *