In modern society, consumers exhibit a reduced propensity to make divergent or autonomous choices; instead, they tend to conform to choices predetermined by institutional frameworks or producers. Besides, producers prefer to make a small change to their old products instead of creating a new one. This trend may lead to less innovation, and fewer people are willing to start up a business. This behaviour is called keeping the status quo. This paper examines the concept of status quo bias. It is a common psychological factor in decision-making. The paper explains the basic definition of the status quo bias, illustrates the mechanism of how it works and how it will influence consumer choices, and accounts for why people often accept default options instead of making some changes even when changing is more beneficial to them. By integrating theoretical frameworks and empirical evidence, this paper aims to reveal how status quo bias shapes economic agents' behaviors and highlights its significance for consumers, producers, and policymakers alike.
Research Article
Open Access