Economics Cognitive Biases Questions
The status quo bias refers to the tendency of individuals to prefer the current state of affairs or maintaining the existing situation rather than making changes. In economic decision-making, this bias can influence individuals to stick with familiar choices or maintain their current investments, even if there may be better alternatives available. This bias can lead to inertia and prevent individuals from exploring new opportunities or adapting to changing circumstances. It can also result in suboptimal decision-making and hinder economic progress.