Status Quo Bias Increases With Decision Difficulty
Wednesday, March 24th, 2010
We like to keep things the same, even if it means making errors or receiving less benefit from a situation. This effect is called the status quo bias. For example, employees will accept the default asset allocation selection in a retirement plan while at the same time understanding that this will likely not produce the best return for them. The amount of mental energy it takes to think through and select an alternative is not worth the potential future financial benefit. Plus there is the potential negative emotional energy associated with taking responsibility for the choice and the worry and even anxiety that may produce. This is not irrationality but it does illustrate the unique cognitive calculus of the status quo bias. We are very sensitive to (put a huge premium on) the amount of mental energy things take. We don’t want our heads to blow up!
In theory, the harder a decision the more mental energy it requires and therefore the stronger the status quo bias should be. A recent article in the Proceedings of the National Academy of Sciences, provides evidence for that and even identifies the region of the brain that is active when we overcome the bias. This could prove an important result for those investing in a neuromarketing approach to complex products and services.
