An Analysis of Status Quo Bias and Its Applications in Behavioral Economics

Abstract

Status quo bias is a common psychological bias in decision-making, and this kind of bias is strong enough to impact or bother people’s personal lives. So it is quite important to explore more about it. This article, through literature research and case analysis, indicates how the status quo bias comes out in aspects of brain science and how it applies to online medical services and consumer behavior. In conclusion, it was discovered that some signal changes in certain neurons in the brain lure people to accept the current situation. Besides, in terms of medical services, due to previous behavioral habits, people tend to ask for help at a local hospital rather than turn to online medical services. To reduce the status quo bias, service providers can increase the attractiveness of alternative options to the status quo. In terms of consumption, most irrational consumers will choose to ignore the free return policy when they shop. Merchants can take targeted measures, such as offering shipping insurance and significantly improving product quality, to fully explore the status quo bias.