How the Status Quo Bias Affects Our Decisions

The status quo bias is a type of cognitive bias that involves the preference that things stay as they are or that the current state of affairs remains the same. This bias minimizes the risks associated with change, but it also causes people to miss out on potential benefits that might outweigh the risks.

By being aware of how the status quo bias influences our decisions and actions, we can look for ways to reduce the bias in the choices we make every day. Here we explore what this bias entails, why it occurs, and how it impacts our lives.

What Is the Status Quo Bias?

The status quo bias is defined as "a non-rational or biased preference for the current way of doing things." An example is choosing to drive the same way to work each day or always ordering the same food item at a local restaurant.

Change can be a scary thing for many people, often being perceived as a loss or detriment. The status quo bias can make us resistant to change, also having a powerful effect on our decision-making strategies.

History of the Status Quo Bias

The term "status quo bias" was first introduced by researchers William Samuelson and Richard Zeckhauser in 1988. In a series of controlled experiments, Samuelson and Zeckhauser found that people show a disproportionate preference for choices that maintain the status quo.

In these experiments, participants were asked a variety of questions in which they had to take the role of decision-maker. They involved situations often faced by individuals, managers, and government officials.

The results showed a strong status quo bias in subjects' responses. Specifically, when making an important decision, subjects were more likely to pick the option that maintained things as they were.

Explanations for the Status Quo Bias

Why do people tend to have such a strong bias for the status quo? A number of other cognitive biases support its existence.

Loss Aversion Bias

When considering potential choices, people often focus more on what they stand to lose rather than how they might benefit. According to the "prospect theory," an economics theory developed by researchers Daniel Kahneman and Amos Tversky in 1979, "losses loom larger than gains."

As an example, the research by Samuelson and Zeckhauser also found that younger workers were more likely to sign up for a health insurance plan that had better premiums and deductibles. Conversely, older employees were more likely to stick with their old but less favorable plans.

Older employees may be more concerned with minimizing any possible losses rather than risking everything on some potential gains. They know what to expect from their current plan, so they may be less willing to accept the risks of a new plan—even though the switch might come with financial benefits.

Mere Exposure Effect

Just being exposed to certain things may also play a role in our development of a status quo bias. Quite often, the things we prefer only become favored because we are more familiar with them. This is known as the mere exposure effect.

Additionally, the more exposure we have to something, the stronger this effect becomes. For instance, one study found that the more frequently participants were exposed to images of cars in different locations, the greater their preference for them.

Impacts of the Status Quo Bias

This form of simplified decision-making can help us save time as well as improve our efficiency. We don't have to think about our choices and, instead, do what we've always done. At the same time, making the same decision over and over can cause us to miss out on certain benefits, both small and large.

Minor Impacts

If we order the same menu item each time we visit our favorite restaurant, for instance, we may miss out on other food choices that we may enjoy as much or more. We've minimized the risk of any potential losses (being unhappy with what we've ordered), but we've also lost out on the possible benefits, such as finding a new favorite dish.

Sticking with a current cable or satellite provider is another example of how the status quo bias may influence everyday decisions. Even though another provider might offer more channels at a cheaper price, we are already familiar with our current provider's rates, choices, and customer service, so we don't make the switch.

Larger Impacts

The status quo bias can also have an impact on more significant life choices. This includes those that affect our finances, political choices, and even our health.

Financial

A status quo bias is often used to explain why people fail to take advantage of investment and savings opportunities. Rather than place their money in investments that have a degree of risk, people often leave their money in low-yield savings accounts.

Political

In politics, the status quo bias is also often used to explain a conservative mindset. People who identify as conservative tend to focus on maintaining traditions and keeping things the way they are.

A person with this political mindset may seek to avoid risks associated with change. But they also risk missing out on possible benefits that change might bring. They may also find it difficult to deal with change.

Health

A status quo bias can also have an impact on the health choices that people make. According to one study, this bias was linked not only with a higher level of physical inactivity but also a higher body mass index (BMI) and other unhealthy lifestyle factors.

The status quo bias may even affect our decisions to continue or discontinue life-sustaining treatment for loved ones. In one article, the author suggests that one reason families struggle with removing life-sustaining equipment even when recommended by physicians is because this changes the status quo.

Summary

Like many other cognitive biases, the status quo bias does have benefits. Because it prevents people from taking risks, the bias offers a certain degree of protection.

However, this risk avoidance can also have negative effects. This is especially true if the alternatives provide greater safety and benefits than one's current state of affairs.