Decision Mistakes - Part 2
- Topics:
- Decision making
- Source:
- decision-making-confidence.com
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Overview: The status quo bias is the observation that people like things to stay the same. This is tied up with two other biases. Humans are loss aversive creatures. They much prefer avoiding losses than achieving gains. And people also value something more when they own it than before they own it. For example, most people would find it perfectly acceptable to buy something at one price and sell at a higher price. The status quo bias can lead to decision mistakes were people avoid decisions because they're afraid of consequences or adverse responses. Or they delay them for so long that they actually miss the opportunity.
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Format: HTML | Date: Jan 2008 | Pages: 5
