. This papers investigates this debate. We demonstrate that the missing consideration of the status quo bias in previous …

stylized facts of prospect theory like loss aversion, status quo bias and non-linear probability weighting. Locally limited …, since this adjustment happens over time, new predictions are made that explain why the status quo bias is reinforced over …

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 …