Arbeitspapier
Limited attention and status quo bias
We introduce and axiomatically characterize a model of status quo bias in which the status quo affects choices by both changing preferences and focusing attention. The resulting Limited Attention Status Quo Bias model can explain both the finding that status quo bias is more prevalent in larger choice sets and that the introduction of a status quo can change choices between non-status quo alternatives. Existing models of status quo bias are inconsistent with the former finding while models of decision avoidance are inconsistent with the latter. We report the results of laboratory experiments which show that both attention and preference channels are necessary to explain the impact of status quo on choice.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 2014-11
- Classification
-
Wirtschaft
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- Subject
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Status Quo Bias
Reference Dependence
Attention
Revealed Preference
- Event
-
Geistige Schöpfung
- (who)
-
Dean, Mark
Kibris, Özgür
Masatlioglu, Yusufcan
- Event
-
Veröffentlichung
- (who)
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Brown University, Department of Economics
- (where)
-
Providence, RI
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dean, Mark
- Kibris, Özgür
- Masatlioglu, Yusufcan
- Brown University, Department of Economics
Time of origin
- 2014
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