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Is Status Quo Bias Consistent With Downward‐Sloping Demand?

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  • DONALD WITTMAN

Abstract

We show that status quo bias combined with downward‐sloping demand implies addictive behavior. This result does not depend on transitivity, a complete ordering, or even the existence of a preference relation that rationalizes choices. (JEL D11, D81)

Suggested Citation

  • Donald Wittman, 2008. "Is Status Quo Bias Consistent With Downward‐Sloping Demand?," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 283-288, April.
    • Handle: RePEc:bla:ecinqu:v:46:y:2008:i:2:p:283-288
    DOI: 10.1111/j.1465-7295.2007.00061.x
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    1. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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