Saturday, January 7, 2006

The Status-Quo Trap

Again this is a behavioral phenomenon that we repeat everyday. The article uses example such as investment inherited. I could see that we unconsciously go to the same restaurant drive the same route or consume the similar kind of food in our daily life. Our tendency is to take the least resistance, less effort, and less psychological risks when making trivial decisions. This tendency of protecting the status-quo becomes a bad habit when big decisions are being deliberated. How do we lessen the status-quo pull in our decision making? Let’s try below:-

  • State your objectives. It’ll be obvious that the status-quo, i.e. do nothing is only one of the options that may not serve all your objectives well;

  • Identify other options just to balance the pull from status-quo;

  • Avoid exaggerating the effort and costs of alternatives other than status-quo;

  • Remind yourself that the desirability of the status-quo changes with time, look further into future rather than choosing the easiest move shortsightedly;

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