Status Quo Bias Research Articles

Employees' Behavioral Intention to Adopt Facial Recognition Payment to Service Customers

Facial recognition payment (FRP) is a crucial technology for digital transformation among merchants. However, few studies have explored employees' adoption of FRP. This study combined the status quo bias theory and the value-based adoption model to investigate the critical factors affecting employees' behavioral intention of FRP, including switching benefits, job insecurity, colleague opinion, top management support, and inertia. The results show that switching benefits, job insecurity, colleague opinion, top management support, and inertia are essential factors that determine employees' behavioral intention of FRP. Surprisingly, the perceived customer value negatively moderates the relationship between perceived value and behavioral intention. Furthermore, the authors provide rigorous endogeneity tests for the research model. Overall, this study contributes to the status quo bias and value-based adoption model theories and literature in organizations' digital transformation and offers valuable insights to eliminate resistance and encourage the active use of FRP.

Examining the Effects of Status Quo Bias on Household/Individual Carbon Consumption

The research investigated the degree of influence status quo bias has on rising carbon emissions. It found that status quo bias strongly regulates the actions of households and individuals when making environmental decisions. Through transportation, individuals lack the incentive to switch to eco- friendly methods and display inertia to their original path. Consumption habits and market interactions also show individuals’ reluctance to new technologies. Results show that the status quo bias plays a significant role as one of the fundamental causes of uncontrollable carbon emissions.

Addressing status quo bias to turn a failing decision system introduction around: the case of DB Schenker

ABSTRACT A new decision system introduction gone wrong can be costly and have further negative consequences. One of the reasons why IT introductions can go wrong is user resistance – often caused by a status quo bias of the users towards the old system. An ironic aspect as decision systems are often especially designed to counter decision biases. This case study presents evidence that targeted countermeasures to status quo bias can help. Based on a review of the available literature, research-based countermeasures were identified and later complemented with practice-based countermeasures from a case study at DB Schenker. With the help of these countermeasures, DB Schenker managed to turn around a new financial reporting system introduction gone wrong.

On status quo bias and the existence of Condorcet cycles in binary voting situations

On status quo bias and the existence of Condorcet cycles in binary voting situations

Behavioral Biases and their Influence on Financial Decisions: An Analysis of Social Entrepreneurship in a Medium-Sized City

In recent years, entrepreneurship has been an alternative economic livelihood that independently seeks to generate employment and in turn the economic growth of countries. Social entrepreneurship is a topic of great importance in recent research, however, there is still not enough empirical evidence to analyze the rationality of decision making. Given the social factor they pursue, it is possible that they may be affected by behavioral distortions that influence their rationality, especially in three financial aspects: investment, savings and indebtedness. Therefore, the objective of this work is to determine the existing influence between behavioral biases and financial decision making of social enterprises in the canton of Cuenca. The study is a descriptive-correlational cross-sectional approach, using structural equations from Partial Least Squares (PLS). The sample obtained is 162 social enterprises. The results show a significant positive influence of overconfidence, procrastination, status quo, and negative influence of over optimism on investment decisions. Also, procrastination and status quo directly influence savings decisions, but the gambler's fallacy indirectly. On the other hand, the risk aversion, overconfidence, over optimism and status quo biases were significantly influenced on borrowing decisions

Implication of Financial Services Marketing: A Study with reference to Behavioral Economics

Abstract Purpose – It has been argued that the insights provided by behavioral economics have profound Implications for the study and practice of marketing. The purpose of this paper is to provide a detailed analysis of how such insights help enhance understanding of aspects of marketing and consumer behavior in financial services markets. Design/methodology/approach – This paper looks at various facets of behavioral economics Which it is felt provide particularly important and salient insights in the context of financial services. In particular, it studies loss aversion and prospect theory, status quo bias and defaults, framing and anchoring effects, hyperbolic discounting, availability effect and salience and over-confidence. In doing so, it provides a number of examples from the financial services context which provide insightful and informative insights for both commercial practitioners and policymakers. In each case, relevant phenomena are introduced and explained before providing a number of applications and examples from the financial services domain. Findings – The authors find that the insights afforded by behavioral economics are useful in helping to explain various aspects of consumer behavior in financial services markets. It is shown that an understanding of the implications of behavioral economics may help in fashioning a choice architecture that is more likely to bring the desired consumer response, from either a commercial or policymaking perspective. Practical implications – This analysis provides important insights for those responsible for the Marketing of financial services, policymakers in the financial services domain, third sector agencies seeking to foster greater engagement with financial services and other interested parties. Originality/value – The paper adds value by drawing together various aspects of behavioral Economics, providing an analysis of their relevance to financial services marketing and offering Numerous examples and applications. Keywords-: Financial services, Behavioral economics, Consumer behavior in financial services, Marketing Paper type-: Conceptual paper

Navigating Technological Shifts: An Examination of User Inertia and Technology Prestige in Large-Language-Model AI Chatbot Transition

As large-language-model (LLM) AI chatbots create new pathways for problem-solving, they pose a challenge to the dominance of traditional search engines and knowledge sharing platforms. Utilizing theories of Status Quo Bias and Symbolic Consumption, this study investigates how user inertia and the perceived prestige of LLM AI chatbots influence the transition between platforms. A national survey comprising participants who have used LLM AI chatbots, knowledge sharing forums, and search engines (N = 800) within China was conducted. The findings obtained from structural equation modeling reveal that user inertia, rooted in habits and sunk costs, inhibits platform transition; however, the prestige of LLM AI chatbots can promote adoption and mitigate inertia; and entrenched media habits could, surprisingly, facilitate openness to new technologies. Implications on platform migration behavior amid technological advancements are discussed.

Examining the Status Quo Bias for the Recent Global Economic Crisis: The Case of Türkiye

The objective of this paper is to investigate the "status quo bias,” which is a key concept in behavioral economics, using macroeconomic data from the recent economic crisis in Türkiye. The current global economic situation provides a favorable opportunity to analyze this idea, as there are abundant and relevant inputs for this type of study. Specifically, this paper analyzes the nexus between consumption and income before and after the economic crisis that triggered by the Covid-19 pandemic in Türkiye, with the aim of examining the "status quo bias” by employing ARDL Bounds Test. The analysis findings support that Türkiye has exhibited status quo bias for the period from 2013 to 2022. This research fills a gap in the literature by presenting evidence that Türkiye, a country that has been overlooked in the field of behavioral economics, exhibits the status quo bias in the context of recent economic crisis triggered by the Covid-19 outbreak.

Unfolding IoT Adoption: A Status Quo Bias Perspective

AbstractInternet of Things (IoT) solutions are still far from using their enormous potential, partly because misconceptions lead employees to avoid using IoT solutions and stick to established working routines. To shed light on the non-rational perspective of users, which allows for inference on the emergence of cognitive misconceptions, 489 respondents' perceptions of benefits and costs of IoT solutions were analyzed. Using the perspective of “status quo bias”, the qualitative analysis reveals that the perceptions of experienced and inexperienced users partly overlap on benefits such as the reduction of errors and relief of personnel. However, the perceptions also diverge in part, as inexperienced users consider IoT solutions to be gimmicky, fostering mistrust. In addition, inexperienced users overestimate learning phases for interacting with IoT solutions, leading to loss aversion and consequently to cognitive misperceptions. Hence, the study examines the gap between experienced and inexperienced users as a neglected aspect in IoT adoption. Further, identifying relevant drivers for the implementation of IoT solutions at the individual level helps to extend the hitherto technical view of IoT solutions towards a multi-layer approach that includes a holistic, behavioral perspective.

Anthropomorphism and Technology Adoption: Integrating ISS Model and SQB Theory in HR-IVAs Adoption

The current study aims to establish a comprehensive framework for understanding the factors affecting intention to adopt HR-IVAs (Human Resource Intelligent Virtual Assistants) systems at the workplace by the employees. A research model is developed by integrating the ISS (Information System Success) model and SQB (Status Quo Bias) theory to study HR-IVAs adoption intention of employees. The moderating role of Perceived Anthropomorphism on these associations is studied. The non-random sampling technique with a single cross-sectional research design is used to collect responses from 374 respondents who were employees of service sector organizations. CFA, along with PLS-SEM, has been used to test the proposed research model. It was found that Perceived Information Quality (PIQ) and Perceived Systems Quality (PSQ) from the ISS model significantly impacted the Attitude towards the Adoption (AtA) of HR-IVAs, whereas only Perceived Threat (PT) from SQB theory significantly impacted AtA. Further, AtA significantly impacted the Adoption Intention (AI) of HR-IVAs. Additionally, Perceived Anthropomorphism (PA) significantly moderated the associations between PIQ and AtA as well as AtA and AI. The present study provides a novel conceptual framework that can be leveraged to gain insights into drivers and barriers to adopting HR-IVAs in the workplace.

Bureaucracy in quest of feasibility

A bureaucracy has to determine the values of many decision variables while satisfying a set of constraints. The bureaucracy is not assumed to have any objective function beyond achieving a feasible solution, which can be viewed as “satisficing” à la Simon (1955). We assume that the variables are integer-valued and the constraints are linear. We show that simple and (arguably) natural versions of the problem are already NP-Hard. We therefore look at decentralized decisions, where each office controls but one decision variable and can determine its value as a function of its past values. However, an attempt to consult more than a single past case can lead to Condorcet-style consistency problems. We prove an Arrovian result, showing that, under certain conditions, feasibility is guaranteed only if all offices mimic their decisions in the same past case. This result can be viewed as explaining a status quo bias.

Developing nudges, nudge+ and boosts to support climate change mitigation in practice – A case study on ash fertilization among Finnish private forest owners

Forests are crucial for climate change mitigation as they absorb and store large amounts of carbon dioxide. In Finland, ash fertilization of drained peatland forests has been identified as part of the climate change mitigation strategy, yet it is implemented notably less than it could be. Therefore, this study aimed to identify most effective nudges, nudge+ and boosts that could steer Finnish non-industrial private forest (NIPF) owners to adopt ash fertilization in their forest. Semi-structured interviews with 19 NIPF owners were analyzed using the Behaviour change wheel to identify key factors influencing owners’ willingness to engage in ash fertilization. Most factors raised by forest owners were related to reflective motivation encompassing both drivers and barriers to practicing ash fertilization. We also identified possible cognitive biases that were influencing decisions. The suggested nudges, nudge+ and boosts address both the specific concerns of the forest owners and the underlying heuristics. For example, framing ash fertilization as a standard procedure of professional forest management and including it into forest management plans could facilitate overcoming status quo bias that may hinder the adoption of novel forest management practices. These findings are directly applicable for creating nudges, nudge+ and boosts on ash fertilization for experienced, professionally managing NIPF owners with larger forest estates. Our study also offers an approach that can be adapted for broader application in environmental and climate-friendly decision-making, contributing to the growing body of literature on the intersection of behavioral science and environmental management.

How Does the Need for Uniqueness Affect Facial Recognition Payment Switch Intention? A Status Quo Bias Perspective

Despite the growing research interest in facial recognition payment (FRP), the factors that influence the intention to switch to FRP have received limited attention. Grounded in status quo bias theory, this study explores predictors of users’ intention to switch from QR code payment to FRP through an online survey. The empirical findings based on 1,244 responses indicate that the need for uniqueness negatively affects embarrassment, privacy concern, and inertia and positively affects switch intention. Further, embarrassment and privacy concern are both positively related to inertia and negatively related to switch intention, and inertia significantly reduces switch intention. Through multi-group analysis, this study also finds that users with experience using services enabled by facial recognition technology are more willing to switch to FRP. This study enriches the FRP literature by highlighting the roles of inertia and the need for uniqueness and provides several implications for FRP practitioners.

To change or not to change? – Status quo bias and happiness

The status-quo bias (SQB) is the tendency to stick with the current situation despite potential dissatisfaction. In this study, we explore the relationship between SQB and subjective well-being (SWB). We hypothesized that higher SQB may lead to less desirable situations (e.g., unsatisfactory marriage, unwanted job), negatively affecting SWB. We developed and examined a novel index for measuring SQB. Surveying 1,423 Israeli working adults, the index showed strong internal consistency and validity, affirming reliability and construct validity. A significant negative correlation between SQB and three SWB measures was found, with SQB explaining more to SWB variations than subjective health, income, and religion combined. Positive life changes over the past three years have moderated this relationship. Moreover, despite including factors like regret, present bias, loss aversion, and optimism—which correlate with SWB and SQB in opposite directions and, therefore, could nullify our findings—the SQB-SWB correlation remained robust. Furthermore, our SQB measure significantly predicted SWB even when controlling for the negative relationship between the affective component of SWB (i.e., emotions) and SQB, which was demonstrated to operate in reverse causality compared to our hypothesis. In other words, SQB was found to mediate between the affective component and the other components of SWB. By providing evidence of the correlation between SQB and SWB, we introduce a robust SQB measurement tool, and underscore SQB's importance when exploring SWB determinants, suggesting that policy interventions encouraging individuals to overcome barriers to change could be advantageous.

Avoiding critical entrepreneurial cognitive errors through linear/nonlinear thinking style balance

ABSTRACT This study provides empirical evidence for why linear (for example, analytical, logical) and nonlinear (for example, intuitive, creative) thinking style balance is associated with effective entrepreneurial decision making and essential for cultivating organizational innovation. This study examined the relationship between linear and nonlinear thinking style and two common detrimental cognitive biases or errors that often interfere with effective entrepreneurial decision-making: representativeness bias and status quo bias. A sample of 261 business professionals completed a survey measuring linear/nonlinear thinking style profile and decision-making scenarios that assess each cognitive bias. The results provided evidence that linear thinking style is helpful in avoiding the representativeness bias, nonlinear thinking style is beneficial for lessening the status quo bias, and linear/nonlinear thinking style balance is effective in averting both cognitive biases. We discuss the implications of these results and future research directions for advancing theory and practice, and particularly for guiding the design of entrepreneurship education.

Avoiding Regret and its Relationship to Status Quo Bias among Divorced People

Avoiding Regret and its Relationship to Status Quo Bias among Divorced People

Applying Behavioral Economics to Social Capital to Increase International Enrollment in U.S. Community Colleges

ABSTRACT At a time when international student enrollment has been declining at community colleges for more reasons than just the pandemic, this paper attempts to address a gap in the literature to assist community colleges with their enrollment by helping them recruit international students. While there are many suggestions for improving international enrollment numbers, they are often financially costly. Given the budgets of community colleges and how international students choose their post-secondary institutions, community colleges are best able to raise international enrollment by concentrating on improving the campus experience for their current international students. To do so, this paper is the first to apply insights from behavioral economics to see how they might help increase the social capital of international students to boost international enrollment. Outside the classroom, international students may be helped by the college employing behavioral biases such as the availability bias and status quo bias and the heuristic known as the foot-in-the-door to raise their social capital with domestic students and using the information overload and choice overload to increase their social capital with academic counselors. Inside the classroom, faculty members can employ behavioral biases like the appeal to authority and the in-group bias to help international students increase their social capital with domestic students.

Choice by elimination then selection

This paper analyzes a decision-making process known as Choice by Elimination then Selection (ES), in which an individual narrows down available alternatives based on a preference order called the elimination relation and then selects the best element from the remaining alternative(s) based on a different preference order called the selection relation. The elimination and selection criteria need not rank alternatives in the same order. ES can be seen as a response to information overload, where shortlisting alternatives can facilitate more informed and beneficial choices. It can also be seen as a method to make a choice when moral or personal values are in the way of utility maximization. The paper uses an axiomatic approach to fully characterize the choices based on the ES method, showing that ES choices may not satisfy the Weak Axiom of Revealed Preference (WARP) and, thus, are not rationalizable under the standard classical framework. Four axioms are introduced to fully characterize the choice correspondence based on ES. The paper also discusses the uniqueness of the elimination and selection ordering relations. The ES method belongs to the class of models that analyze boundedly rational choice behavior, such as choice with frames, limited attention models, list rationalizable models, categorize then choose, and status quo bias.

Santa Claus is coming!

This research delves into the "seasonal fixed bonus" phenomenon in Mexico, Spain, the United States, and Canada, examining how employees prefer receiving payments during the Christmas season or evenly distributed throughout the year. Two hypotheses explore biases arising from bounded rationality: Hypothesis 1 suggests Mexican/Spanish workers may resist receiving the bonus dispersed throughout the year, while Hypothesis 2 posits American/Canadian workers may resist a reduction in monthly payments for a seasonal bonus. Using a utopic international competition, the study reveals that Mexican/Spanish participants exhibit a preference for end-of-year rewards, partially supporting Hypothesis 1, whereas American/Canadian participants lean towards immediate rewards, partially supporting Hypothesis 2. Statistical significance is found in Mexico and Spain, aligning with mental accounting principles, while the U.S. and Canada show similar trends but lack significance. This implies a potential status quo bias among American and Canadian workers regarding seasonal bonuses.

Understanding students’ switching intentions from cash payment to mobile payment in education sector

PurposeThe study intends to evaluate students’ intention to shift from cash payment to mobile payment system for academic fee payments through push, pull and mooring framework. Push factors comprise risk and service-related factors, pull factors consist of subjective and aspect-based factors and mooring factors include cost and cognitive factors.Design/methodology/approachSample of the study consists of around 296 undergraduate and postgraduate students from different higher educational institutions located in India. The questionnaire for data collection comprises 21 Likert scale-based items distributed among seven constructs. Partial least square structural equation modeling is used to identify the significant factors influencing students’ intentions.FindingsFive of the factors, namely, risk, service, subjective, aspect and cognitive significantly influence student’s intention to switch to mobile payment system for academic fee payments. Moderation analysis indicates that the impact of the push and pull factors on switching intention towards mobile payments has a more positive influence among male students.Originality/valueThis study is probably the only study that tested the specific push, pull and mooring factors influencing intention to switch to mobile payment from cash payment in the Indian education system based on the incentive, Fogg behavior and status quo bias theory for academic fee payment.