Thursday, April 28, 2016

Status Quo Bias

People generally do not like change or prefer to do nothing.
This leads to decision that guarantee that things will remain the same or change as little as possible.
"If it ain't broke, don't fix it"
At least subconsciously we assume that another choice is inferior or would make things worse.

Examples:
  • We like to stick to routines, political parties, favorite meals in restaurants, etc
  • US still does not have universal healthcare, although big majorities support the idea, and when the Obama Administration started to act in that direction, ca half of all Americans now disapprove of the idea
  • When offered a cheaper insurance company people still chose there previous one
  • Same happened with retirement plans (both were real-life experiments in Pennsylvania, 1190)

No comments:

Post a Comment