Common Explanations for Status Quo Bias

These explanations are all irrational for preferring the status quo:

• Loss Aversion: When we make decisions, we weigh the potential for loss more heavily than the potential for gain.
• Sunk Costs: We continue to invest resources like time, money, or effort into a specific endeavor just because we are already invested, not because it is the best choice.
• Cognitive Dissonance: In decision-making, we an option as more valuable once we have chosen it. Considering an alternative can cause cognitive dissonance.
• Mere Exposure Effect: It states that people prefer something they've been exposed to before.
• Rationality vs. Irrationality: We may choose to keep our current situation because of the potential transition cost of switching to an alternative. It becomes irrational when we ignore choices that can improve a situation because we want to maintain the status quo.