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Status Quo Bias: Difference between revisions
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'''[[Energy frugal brain|Our brains don't like to expend energy]], so we are hardwired to avoid tasks that cause us to [[Cognitive dissonance|change our mindset]] or that lead to cognitive burden. This leads us to have a bias towards sticking with the status quo...''' | '''[[Energy frugal brain|Our brains don't like to expend energy]], so we are hardwired to avoid tasks that cause us to [[Cognitive dissonance|change our mindset]] or that lead to cognitive burden. This leads us to have a bias towards sticking with the status quo...''' | ||
We are 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 | We are 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|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 2'''. People feel losses greater than equivalent gains.]] | [[File:Status Quo Bias.png|alt=Status Quo Bias|thumb|'''Figure 2'''. People feel losses greater than equivalent gains.]] | ||
The Status Quo Bias is something that has been observed in numerous scientific studies<ref>'''Status quo bias in decision making'''. ''Journal of Risk and Uncertainty, 1,'' 7-59. Samuelson, W., & Zeckhauser, R. J. (1988). </ref><ref>'''Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias'''''. Kahneman, D.; Knetsch, J. L.; Thaler, R. H. (1991). Journal of Economic Perspectives. '''5''' (1): 193–206. doi:'' https://www.aeaweb.org/articles?id=10.1257/jep.5.1.193</ref>. In one study, it was found that 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 as pleasure from gaining US$100 (See '''Figure 2'''). 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. | The Status Quo Bias is something that has been observed in numerous scientific studies<ref>'''Status quo bias in decision making'''. ''Journal of Risk and Uncertainty, 1,'' 7-59. Samuelson, W., & Zeckhauser, R. J. (1988). </ref><ref>'''Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias'''''. Kahneman, D.; Knetsch, J. L.; Thaler, R. H. (1991). Journal of Economic Perspectives. '''5''' (1): 193–206. doi:'' https://www.aeaweb.org/articles?id=10.1257/jep.5.1.193</ref>. In one study, it was found that 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 as pleasure from gaining US$100 (See '''Figure 2'''). 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. | ||