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Status Quo Bias: Difference between revisions
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It essentially makes us resistant to change, as we fear we’ll regret actively making choices (when doing nothing is also a “choice”). The Status Quo Bias can, for example, lead to “loss aversion bias” – compelling us to focus on not losing. When in doubt, we essentially tell ourselves to do nothing. | It essentially makes us resistant to change, as we fear we’ll regret actively making choices (when doing nothing is also a “choice”). The Status Quo Bias can, for example, lead to “loss aversion bias” – compelling us to focus on not losing. When in doubt, we essentially tell ourselves to do nothing. | ||
[[File:Status Quo Bias.png|alt=Status Quo Bias|thumb|'''Figure 1'''. People felt the loss of what they had more than they felt equivalent gains.]] | |||
Losses are almost twice as psychologically harmful as gains are beneficial. In other words, most people feel twice as much psychological pain from losing US$100 (£82) as pleasure from gaining US$100. This bias means that people are reluctant to take risks by giving away what they possess in favour of something that “might” be more profitable to them in the future. | Losses are almost twice as psychologically harmful as gains are beneficial. In other words, most people feel twice as much psychological pain from losing US$100 (£82) as pleasure from gaining US$100. This bias means that people are reluctant to take risks by giving away what they possess in favour of something that “might” be more profitable to them in the future. | ||