Behavioral concept graphic

Status quo bias

The status quo bias is our tendency to remain in our current state and with our current choices. This bias is partially explained by loss aversion; we do a greater effort to avoid loosing our current state, than we do to achieve a possibly similar or larger gain. Many situations in life reflect this bias, including which financial tools we use.

Relevant Academic Papers
  • Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). And status quo bias. The Journal of economic perspectives, 5(1), 193-206.