AP MicroeconomicsBehavioral Economics
Status Quo Bias
Status quo bias is the tendency to stick with the current situation or default option rather than switch, even when a better alternative exists.
People disproportionately keep things as they are, doing nothing or renewing the prior choice, because of loss aversion and the perceived risk of change. It explains why default options are so powerful: making 401(k) enrollment automatic dramatically raises participation. Identified by Samuelson and Zeckhauser, it is a key justification for default-setting nudges.