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Cognitive biases & decision-making · law 075

Status Quo Bias

By Shivam Bhandari · Reviewed 31 October 2026 · How we write

what it means

People prefer things to stay the same and tend to stick with defaults, even when change would benefit them.

How Status Quo Bias works

Change requires effort and carries risk; staying put feels safe. So people keep the same bank, supplier, plan, or habit — even when better options exist.

For businesses, this is both a barrier (getting customers to switch) and an asset (keeping customers once they are yours). Defaults are powerful.

where it comes from

Named by economists William Samuelson and Richard Zeckhauser in 1988. Eric Johnson and Daniel Goldstein's 2003 study showed organ donation rates were dramatically higher in countries where donation was the default.

Status Quo Bias examples in business

Defaults

Pre-selecting a ‘standard’ plan leads most customers to choose it.

Switching

Customers stay with an old supplier even when a cheaper one is available.

Internal change

Teams resist new software even if it is clearly better.

How to apply it

  1. 1Set smart, customer-friendly defaults.
  2. 2To win customers from competitors, make switching effortless.
  3. 3To keep customers, make staying the easy default.
  4. 4For internal change, reduce effort and show quick wins.

common misreading

Defaults that trick people (hidden auto-renewals, pre-ticked add-ons) can breach consumer law and destroy trust.

ask yourself

What default choice are your customers making without thinking — and is it the right one?

put it into practice

Frequently asked questions

What is Status Quo Bias?

People prefer things to stay the same and tend to stick with defaults, even when change would benefit them. Change requires effort and carries risk; staying put feels safe. So people keep the same bank, supplier, plan, or habit — even when better options exist.

Who came up with Status Quo Bias?

Named by economists William Samuelson and Richard Zeckhauser in 1988. Eric Johnson and Daniel Goldstein's 2003 study showed organ donation rates were dramatically higher in countries where donation was the default.

How do you apply Status Quo Bias in business?

1. Set smart, customer-friendly defaults. 2. To win customers from competitors, make switching effortless. 3. To keep customers, make staying the easy default. 4. For internal change, reduce effort and show quick wins.

What is a common misunderstanding of Status Quo Bias?

Defaults that trick people (hidden auto-renewals, pre-ticked add-ons) can breach consumer law and destroy trust.

Status Quo Bias in real case studies

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