When changes do occur, people tend to perceive them as a loss or detriment. The status quo bias can make people resistant to change, but it can also have a powerful effect on the decisions they make as well.What 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.How do you determine whether a study is bias-free?
That is, for bias-free subjects, y should be nearly equal to (but slightly less than) X. On the other hand, if status quo bias is signifi- cant, one would expecty > x, reflecting a preference for the status quo (regardless of what the status quo is).Where is status quo bias in decision makmg 57 more space located?
STATUS QUO BIAS IN DECISION MAKMG 57 more space) in a recently completed office complex. The new office is located 5 minutes from your home, 25 minutes from Route 128, and 20 minutes from the air- port.