Title: Applications of the Status Quo Bias in Consumer Rationality, Predictive Analytics, and Medicine
Abstract: The status quo bias is a heuristic that indicates people are more likely to stick with the default option and not willing to make changes even if making the change is more beneficial when they are making choices, and the status quo bias gets more robust when there are more options, or the new choices appear to be more intricate. This heuristic dramatically influences people's behavior while making choices, so its essential to know how it modifies people's choice-making strategy in different markets to eliminate possible errors and make more precise predictions. Based on previous research and studies, this article explains the basic concept of status quo bias and discusses three applications of status quo bias in three different fields. The first application discusses the connection between consumer rationality and the status quo, which indicates that knowing the effect of the status quo helps companies to know better the consumers' willingness to switch to alternative options. The second application indicates that the status quo bias makes people underestimate the interest rate change in bond markets. Finally, the third application shows that the status quo bias helps the governments to enact better policies to encourage more organ donors.