Behavioural Finance
Status Quo Bias
Definition
What is Status Quo Bias?
Preferring existing choices even when better alternatives are available.
Example in practice
How This Looks in Practice
An investor remains in an expensive fund because switching requires effort.
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Related Terms
Behavioural Finance
Loss Aversion
The tendency to feel losses more strongly than equivalent gains.
Behavioural FinanceOverconfidence Bias
The tendency to overestimate one's knowledge, forecasting ability, or control.
Behavioural FinanceConfirmation Bias
The tendency to seek or interpret information that supports an existing belief.
Sustainable InvestingESG Investing
Incorporating environmental, social, and governance factors into investment analysis or ownership.