In economics, status quo bias can cause individuals to make seemingly non-rational decisions to stay with a sub-optimal situation. For example, over a lifetime, it is rational to save for a pension.What is the meaning of status quo in law?
Definition of status quo : the existing state of affairs seeks to preserve the status quo : the current situation : the way things are now : the existing state of affairs specifically : the last actual and uncontested state of affairs that preceded a controversy and that is to be preserved by preliminary injunction — compare status quo anteWhat is a status quo alternative?
RICHARD ZECKHAUSER Harvard University Key words: decision making, experimental economics, status quo bias, choice model, behavioral economics, rationality Abstract Most real decisions, unlike those of economics texts, have a status quo alternative-that is, doing noth- ing or maintaining one’s current or previous decision.Is status quo inertia evidence of status qua bias?
We emphasize, however, that status quo inertia is not itself evidence of status quo bias. It is perfectly possible that some subjects prefer the 6-O fleet (or the 6-4 fleet) under any economic conditions. A test of status quo bias requires a comparison of the appropriate marginal probabilities.