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Econ Paper edited

Category: Textual Analysis Essay

Subcategory: Economics

Level: College

Pages: 1

Words: 275

Student’s Name
Status Quo Bias Concept
Status quo bias is defined as the phenomenon where one prefers the situations that they are already familiar with. When people make decisions, they prefer familiar options over the unfamiliar ones (Henderson). Samuelson and Zeckhauser article (1988) presented a real life example of status quo bias.
For instance, when a restaurant offers a number of sandwich options to its customers for lunch, people tend to pick a sandwich they have taken before. This is popularly known as regret avoidance where the customer tries to avoid a choosing a new sandwich that they might end up disliking prefering the status quo (the sandwich option they are familiar with).
Businesses can use status quo bias to influence the consumer decisions (Cherry). One way in which businesses can manipulate consumer decisions is by providing a status quo alternative. Individuals choose the status quo to avoid negative emotions stimulated by competing values. Reminding people about the availability of a status quo alternative lessens the negative emotions. This tactic helps in reducing the negative emotions building in the customer.
Works Cited
Cherry, Kendra. How the Status Quo Bias Affects Your Decisions. (2018).
Henderson, Rob. “How Powerful is Status Quo Bias?” Psychology Today, 2016.…

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