status quo bias

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Status Quo Bias justification - Relation to status quo biasGenerally, the status quo bias refers to a tendency to prefer the default or established option when making choices quo bias'Status quo bias' is a cognitive bias; a preference for the current state of affairs. The current baseline (or status quo) is taken as a reference point, and any change from that baseline is perceived as a loss. quo biasStatus quo bias should be distinguished from a rational preference for the status quo ante, as when the current state of affairs is objectively superior to the available alternatives, or when imperfect information is a significant problem. A large body of evidence, however, shows that status quo bias frequently affects human decision-making. quo biasStatus quo bias interacts with other non-rational cognitive processes such as loss aversion, existence bias, endowment effect, longevity, mere exposure, and regret avoidance. Experimental evidence for the detection of status quo bias is seen through the use of the Reversal test. A vast amount of experimental and field examples exist. Behavior in regard to retirement plans, health, and ethical choices show evidence of the status quo bias. quo bias - ExamplesDaniel Kahneman|Kahneman, Richard Thaler|Thaler, and Jack Knetsch|Knetsch created experiments that could produce this effect reliably. Samuelson and Zeckhauser (1988) demonstrated status quo bias using a questionnaire in which subjects faced a series of decision problems, which were alternately framed to be with and without a pre-existing status quo position. Subjects tended to remain with the status quo when such a position was offered to them. quo bias - ExamplesThe US states of New Jersey and Pennsylvania inadvertently ran a real-life experiment providing evidence of status quo bias in the early 1990s quo bias - ExplanationsLoss aversion, therefore, cannot wholly explain the status quo bias, with other potential causes including regret avoidance, transaction costs and psychological commitment. quo bias - Rational Routes to Status Quo MaintenanceA status quo bias can also be a rational route if there are cognitive or informational limitations. quo bias - Irrational Routes to the Status Quo BiasThe irrational maintenance of the status quo bias links and confounds many cognitive biases. quo bias - Irrational Routes to the Status Quo BiasAn assumption of longevity and goodness are part of the status quo bias. People treat existence as a prima facie case for goodness, aesthetic and Longevity increases this preference. quo bias - Irrational Routes to the Status Quo BiasThe status quo bias affects peoples preferences; people report preferences for what they are likely rather than unlikely to receive. People simply assume, with little reason or deliberation, the goodness of existing quo bias - Mere exposureMere exposure is an explanation for the status quo bias. Existing states are encountered more frequently than non-existent states and because of this they will be perceived as more true and evaluated more preferably. quo bias - Mere exposureA tendency to overemphasize the avoidance of losses will thus favor retaining the status quo, resulting in a status quo bias quo bias - Mere exposureOmission bias may account for some of the findings previously ascribed to status quo bias. quo bias - DetectionIf they are unable to do so, then we have reason to suspect that they suffer from status quo bias quo bias - Neural ActivityA study found that erroneous status quo rejections have a greater neural impact than erroneous status quo acceptances. This asymmetry in the genesis of regret might drive the status quo bias on subsequent decisions. quo bias - Neural ActivityResearch by University College London scientists that examines the neural pathways involved in 'status quo bias' in the human brain and found that the more difficult the decision we face, the more likely we are not to act. quo bias - Neural ActivityThis indicates that the STN plays a key role in overcoming status quo bias when the decision is difficult. quo bias - Behavioral Economics and the Default positionAgainst this background, two behavioral economists devised an opt-out plan to help employees of a particular company build their retirement savings. In an opt-out plan, the employees are automatically enrolled unless they explicitly ask to be excluded. They found evidence for status quo bias and other associated effects. They also noted that changing the default alternatives has, in some instances, been shown to have dramatic effects on peoples choices. quo bias - ConflictStatus-Quo educational bias can be both a barrier to political progress and a threat to the state's legitimacy/ argue that the values of stability, compliance, and patriotism underpin important reasons for status quo bias that appeal not to the substantive merits of existing institutions but merely to the fact that those institutions are the status quo quo bias - Relevant fieldsThe Status quo bias is seen in important real life decisions; it has been found to be prominent is data on selections of health care plans and retirement programs. quo bias - EthicsStatus quo bias may be responsible for much of the opposition to human enhancement in general and to genetic cognitive enhancement in particular. quo bias - HealthThe results of this study indicate that the status quo bias may exist in stated-choice studies, especially with medications that patients have to take daily such as asthma maintenance medications. Stated-choice practitioners should include a current medication in choice surveys to control for this bias. quo bias - Retirement plansAn example of the status quo bias affecting retirement plans is a study done that examined the U.S. equity mutual fund. They found that people maintained the plan they had previously, even if it was no longer the optimal choice. More Information, Visit: Art of Service


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