Status Quo Bias

The tendency of humans to prefer that things stay the same, even when change would be to our benefit.

• Sticking to a job we hate.
• Staying in a bad relationship.

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Key Insights & Principles

Decision Making

1. People have a strong tendency to stick with the status quo or take the default option.
2. The tendency to stick with the status quo can make us passive decision makers.
3. We can overcome the status quo bias when we are forced to justify decisions, like the zero-based budgeting method.
4. We can use our bias for sticking to the status quo to our advantage, to increase savings for example.

1. Aim to justify each decision, and be aware of adopting the default when it is not the best option.
2. Use defaults to embed positive habits or decisions.

Book References