Example of Status Quo Bias
- An employee stays enrolled in a high-fee, underperforming retirement fund for years even after the company introduces a better-performing, lower-cost option, simply because switching requires filling out a form.
The employee defaults to the existing arrangement not because it is superior, but because the current state feels safer and easier than making a change. - A city council votes against replacing an outdated traffic system with a modern roundabout design that studies show would reduce accidents by 40%, citing residents' comfort with the familiar intersection.
The council favors the current setup despite strong evidence that the alternative would save lives, illustrating how status quo bias can override data-driven decision-making.
Note
Status quo bias is closely related to but distinct from mere exposure effect (preferring things simply because they are familiar) and omission bias (judging harmful inaction as less bad than equally harmful action). While all three can reinforce each other, status quo bias specifically centers on the preference for a current baseline, regardless of whether familiarity or moral reasoning is involved.
