What is status quo bias in decision making?
The status quo bias is one type of cognitive bias that involves people preferring that things stay as they are or that the current state of affairs remains the same. This bias can have an effect on human behavior, but it is also a topic of interest in other fields, including sociology, politics, and economics.
What is status quo bias economics?
Status Quo bias is an emotional preference for the current situation. In economics, status quo bias can cause individuals to make seemingly non-rational decisions to stay with a sub-optimal situation.
What is status quo in psychology?
Status quo bias is evident when people prefer things to stay the same by doing nothing (see also inertia) or by sticking with a decision made previously (Samuelson, & Zeckhauser, 1988). This may happen even when only small transition costs are involved and the importance of the decision is great.
What is existence bias?
We have used the term existence bias to describe the process by which people assume that existing states of the world are good and right (Eidelman et al., 2009). Its corollary, longevity bias, describes the processes by which people assume what has existed for longer is better (Eidelman et al., 2010).
How do I stop the status quo trap?
By becoming aware of the status-quo trap, you can lessen its pull by:
- Always reminding yourself of your objectives and examining how they would be served by the status quo.
- Never thinking of the status quo as your only alternative.
- Asking yourself whether you would choose the status quo if it weren’t so.
Who came up with status quo bias?
One of the first papers written about this bias was “Status Quo Bias in Decision Making” by W. Samuelson and R. Zeckhauser, which was published in 1988.
What is the prudence trap?
The overconfidence trap refers to the tendency that individuals overestimate their ability to predict future events. The prudence trap takes the form of overcautiousness, or prudence: When faced with high-stakes decisions, we tend to adjust our estimates or forecasts “just to be on the safe side”.
Who are William Samuel and Richard Zeckhauser?
58 WILLIAM SAMUELSON AND RICHARD ZECKHAUSER Part II. 1. You are part of a management team that has recently acquired a small airline with routes to and from Chicago (its hub) and 16 cities in Illinois, Michigan, Wis- consin, and Minnesota.
Who is Robert Zeckhauser’s wife?
Early in his career, he was one of the ” whiz kids ” assembled by Defense Secretary Robert S. McNamara to apply cutting-edge analysis to Cold War military strategy. He is married to Sally H. Zeckhauser. He is the author or co-author of many books and over 300 peer-reviewed articles.
What is Zeckhauser’s law of Murphy’s law?
Zeckhauser is connected to the so-called Yhprum’s law, the opposite of Murphy’s law, saying: “Sometimes systems that should not work, work nevertheless.” ^ “Richard Zeckhauser”. 2009-10-12.