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

Research Article
Open access

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

Wenyi Jin 1*
  • 1 Zhejiang University of Finance and Economics    
  • *corresponding author wenyi.jin@zufe.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/40/20232017
AEMPS Vol.40
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-101-8
ISBN (Online): 978-1-83558-102-5

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.

Keywords:

behavioral finance, status quo bias, online medical service, free returning policy

Jin,W. (2023). An Analysis of Status Quo Bias and Its Applications in Behavioral Economics. Advances in Economics, Management and Political Sciences,40,173-177.
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References

[1]. EYSENBACH G, POWELL J, KUSS O, et al. Empirical studies assessing the quality of health information for consumers on the World Wide Web [J]. JAMA:the journal of the American Medical Association, 287 (20): 2691-2700. 2002.

[2]. Dhar R. Consumer preference for a no-choice option. J Consum Res 24:215–231. (1997).

[3]. Kahneman D, Tversky A. Prospect theory: An analysis of decision under risk. Econometrica. 47(2):263-291. 1979. doi:10.2307/1914185.

[4]. Samuelson W, Zeckhauser R. Status quo bias in decision making. Journal of Risk and Uncertainty. 1:7-59. 1988.

[5]. Antoinette Nicolle, Stephen M. Fleming, Dominik R. Bach, Jon Driver, and Raymond J. Dolan. A Regret-Induced Status Quo Bias. The Journal of Neuroscience, March 2, 2011.

[6]. Zeelenberg M, Pieters R. A theory of regret regulation 1.0. J Consum Psychol 17:3–18. (2007).

[7]. Zhang Xiaofei. A Study on the Obstructive Factors of Online Medical Service Adoption Based on the Theory of Status Quo Deviation [D]. Harbin Institute of Technology, 2014.

[8]. ZULMAN D M, KIRCH M, ZHENG K, et al. Trust in the internet as a health resource among older adults: analysis of data from a nationally representative survey [J]. Journal of medical Internet research, 13 (1): 202-211. 2011.

[9]. Jiang Hong. A Study on B2C Unjustified Return Strategy Based on Customer Behavior [D]. Tianjin University, 2011

[10]. Godefroid, M. E., Plattfaut, R., & Niehaves, B. How to measure the status quo bias? A review of current literature. Management Review Quarterly, 1-45. (2022).


Cite this article

Jin,W. (2023). An Analysis of Status Quo Bias and Its Applications in Behavioral Economics. Advances in Economics, Management and Political Sciences,40,173-177.

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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN:978-1-83558-101-8(Print) / 978-1-83558-102-5(Online)
Editor:Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.40
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. EYSENBACH G, POWELL J, KUSS O, et al. Empirical studies assessing the quality of health information for consumers on the World Wide Web [J]. JAMA:the journal of the American Medical Association, 287 (20): 2691-2700. 2002.

[2]. Dhar R. Consumer preference for a no-choice option. J Consum Res 24:215–231. (1997).

[3]. Kahneman D, Tversky A. Prospect theory: An analysis of decision under risk. Econometrica. 47(2):263-291. 1979. doi:10.2307/1914185.

[4]. Samuelson W, Zeckhauser R. Status quo bias in decision making. Journal of Risk and Uncertainty. 1:7-59. 1988.

[5]. Antoinette Nicolle, Stephen M. Fleming, Dominik R. Bach, Jon Driver, and Raymond J. Dolan. A Regret-Induced Status Quo Bias. The Journal of Neuroscience, March 2, 2011.

[6]. Zeelenberg M, Pieters R. A theory of regret regulation 1.0. J Consum Psychol 17:3–18. (2007).

[7]. Zhang Xiaofei. A Study on the Obstructive Factors of Online Medical Service Adoption Based on the Theory of Status Quo Deviation [D]. Harbin Institute of Technology, 2014.

[8]. ZULMAN D M, KIRCH M, ZHENG K, et al. Trust in the internet as a health resource among older adults: analysis of data from a nationally representative survey [J]. Journal of medical Internet research, 13 (1): 202-211. 2011.

[9]. Jiang Hong. A Study on B2C Unjustified Return Strategy Based on Customer Behavior [D]. Tianjin University, 2011

[10]. Godefroid, M. E., Plattfaut, R., & Niehaves, B. How to measure the status quo bias? A review of current literature. Management Review Quarterly, 1-45. (2022).