What is the Status Quo Bias in decision-making?

The Status Quo Bias refers to the psychological phenomenon where individuals prefer things to remain the same rather than change. This bias leads to a tendency to maintain current situations and resist making changes, even when alternatives may offer potential benefits. When faced with a decision, individuals may opt for inaction or sticking with the existing state of affairs instead of evaluating new options or changes.

In the context of decision-making, this bias can be observed when individuals experience anxiety about the risks associated with change, leading them to default to the familiar and the previously established choices. The Status Quo Bias can manifest in various domains, such as consumer behavior, policy-making, and personal choices, where an individual may overlook or ignore better opportunities simply to avoid the discomfort of change or uncertainty.

The other options describe different decision-making processes, such as making proactive choices or actively seeking alternatives, which do not reflect the essence of the Status Quo Bias. This bias specifically focuses on inaction and maintaining the current state, which is why the correct choice accurately represents this concept.