What is the status quo bias in Prospect Theory?

Economics Prospect Theory Questions



23 Short 80 Medium 18 Long Answer Questions Question Index

What is the status quo bias in Prospect Theory?

The status quo bias in Prospect Theory refers to the tendency of individuals to prefer maintaining their current situation or decision, even when alternative options may offer better outcomes. This bias suggests that people are more likely to stick with the familiar and avoid change, even if it means potentially missing out on potential gains.