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Status quo bias and attitude towards risk: An experimental investigation

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  • Insaf Bekir
  • Faten Doss

Abstract

Using a laboratory experiment, we investigate whether a link can be established between status quo bias—which is the tendency to maintain a previously chosen alternative—and risk preference. Our findings show that the attitude towards risk and individual criteria are strongly correlated with the status quo bias, which directly and indirectly affects the individual decision‐making process. The results obtained in this paper provide some insights into consumer behavior, firms' strategy, and policy effectiveness.

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  • Insaf Bekir & Faten Doss, 2020. "Status quo bias and attitude towards risk: An experimental investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 827-838, July.
    • Handle: RePEc:wly:mgtdec:v:41:y:2020:i:5:p:827-838
    DOI: 10.1002/mde.3140
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