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Psychological Inertia
Psychological inertia is the tendency to maintain the status-quo (or default option) unless compelled by a psychological motive to intervene or reject this. Psychological inertia is similar to the status-quo bias but there is an important distinction in that psychological inertia involves inhibiting any action, whereas the status-quo bias involves avoiding any change which would be perceived as a loss. Research into psychological inertia is limited, particularly into its causes, but it has been seen to affect decision-making by causing individuals to automatically choose or prefer the default option, even if there is a more beneficial option available to them, unless motivated to reject this option. For example, psychological inertia may cause individuals to continue with their investments later than they should, despite information telling them otherwise, causing them to suffer greater losses than they would have if they had disinvested earlier. Psychological inertia has also ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Status-quo Bias
Status quo bias is an emotional bias; a preference for the maintenance of one's current or previous state of affairs, or a preference to not undertake any action to change this current or previous state. The current baseline (or status quo) is taken as a reference point, and any change from that baseline is perceived as a loss or gain. Corresponding to different alternatives, this current baseline or default option is perceived and evaluated by individuals as a positive. Status quo bias should be distinguished from a rational preference for the status quo ante, as when the current state of affairs is objectively superior to the available alternatives, or when imperfect information is a significant problem. A large body of evidence, however, shows that status quo bias frequently affects human decision-making. Status quo bias should also be distinguished from psychological inertia, which refers to a lack of intervention in the current course of affairs. The bias intersects with oth ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
David Gal
David Gal iProfessor of Marketingat the University of Illinois at Chicago. He is best known for his critiques of behavioral economics, and in particular his critique of the behavioral economics concept of loss aversion. His forthcoming book is titled ''The Power of the Status Quo''. Academic career Gal received his Ph.D. from Stanford University in 2007. He joined the faculty of Kellogg School of Management, The Kellogg School of Management at Northwestern University where he remained until 2014, at which time he joined the faculty of The University of Illinois at Chicago. His research has been published in Journal of Consumer Research, Journal of Marketing Research, Journal of Marketing, Judgment and Decision Making, Psychological Science, Management Science (journal), Management Science, and Journal of the American Statistical Association. It has been featured in the ''New York Times'', ''Wall Street Journal'', ''The Toronto Star'', ''Time'', ''Harvard Business Review'', and '' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Loss Aversion
Loss aversion is the tendency to prefer avoiding losses to acquiring equivalent gains. The principle is prominent in the domain of economics. What distinguishes loss aversion from risk aversion is that the utility of a monetary payoff depends on what was previously experienced or was expected to happen. Some studies have suggested that losses are twice as powerful, psychologically, as gains. Loss aversion was first identified by Amos Tversky and Daniel Kahneman. Loss aversion implies that one who loses $100 will lose more satisfaction than the same person will gain satisfaction from a $100 windfall. In marketing, the use of trial periods and rebates tries to take advantage of the buyer's tendency to value the good more after the buyer incorporates it in the status quo. In past behavioral economics studies, users participate up until the threat of loss equals any incurred gains. Recent methods established by Botond Kőszegi and Matthew Rabin in experimental economics illustrat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Endowment Effect
In psychology and behavioral economics, the endowment effect (also known as divestiture aversion and related to the mere ownership effect in social psychology) is the finding that people are more likely to retain an object they own than acquire that same object when they do not own it. The endowment theory can be defined as "an application of prospect theory positing that loss aversion associated with ownership explains observed exchange asymmetries." This is typically illustrated in two ways. In a valuation paradigm, people's maximum willingness to pay (WTP) to acquire an object is typically lower than the least amount they are willing to accept (WTA) to give up that same object when they own it—even when there is no cause for attachment, or even if the item was only obtained minutes ago. In an exchange paradigm, people given a good are reluctant to trade it for another good of similar value. For example, participants first given a Swiss chocolate bar were generally willing to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Daniel Kahneman
Daniel Kahneman (; he, דניאל כהנמן; born March 5, 1934) is an Israeli-American psychologist and economist notable for his work on the psychology of judgment and decision-making, as well as behavioral economics, for which he was awarded the 2002 Nobel Memorial Prize in Economic Sciences (shared with Vernon L. Smith). His empirical findings challenge the assumption of human rationality prevailing in modern economic theory. With Amos Tversky and others, Kahneman established a cognitive basis for common human errors that arise from heuristics and biases, and developed prospect theory. In 2011 he was named by '' Foreign Policy'' magazine in its list of top global thinkers. In the same year his book ''Thinking, Fast and Slow'', which summarizes much of his research, was published and became a best seller. In 2015, ''The Economist'' listed him as the seventh most influential economist in the world. He is professor emeritus of psychology and public affairs at Princeton U ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Avolition
Avolition, as a symptom of various forms of psychopathology, is the decrease in the ability to initiate and persist in self-directed purposeful activities. Such activities that appear to be neglected usually include routine activities, including hobbies, going to work and/or school, and most notably, engaging in social activities. A person experiencing avolition may stay at home for long periods of time, rather than seeking out work or peer relations. Psychopathology People with avolition often want to complete certain tasks but lack the ability to initiate behaviours necessary to complete them. Avolition is most commonly seen as a symptom of some other disorder, but might be considered a primary clinical disturbance of itself (or as a coexisting second disorder) related to disorders of diminished motivation. In 2006, avolition was identified as a negative symptom of schizophrenia by the National Institute of Mental Health (NIMH), and has been observed in patients with bipolar d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Attribution Bias
In psychology, an attribution bias or attributional bias is a cognitive bias that refers to the systematic errors made when people evaluate or try to find reasons for their own and others' behaviors.Kelley, H.H. (1967). Attribution theory in social psychology. In D. Levine (Ed.) ''Nebraska Symposium on Motivation'', Lincoln: University of Nebraska Press People constantly make attributions—judgements and assumptions about why people behave in certain ways. However, attributions do not always accurately reflect reality. Rather than operating as objective perceivers, people are prone to perceptual errors that lead to biased interpretations of their social world.Nisbett, R.E. & Ross, L. (1980). ''Human inference: Strategies and shortcomings of social judgment'', Englewood Cliffs, NJ: Prentice-Hall. Attribution biases are present in everyday life. For example, when a driver cuts someone off, the person who has been cut off is often more likely to attribute blame to the reckless drive ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cognitive Inertia
Cognitive inertia is the tendency for a particular orientation in how an individual thinks about an issue, belief or strategy to resist change. In clinical and neuroscientific literature it is often defined as a lack of motivation to generate distinct cognitive processes needed to attend to a problem or issue. The physics term inertia is to emphasize the rigidity and resistance to change in the method of cognitive processing that has been in use for a significant amount of time. Commonly confused with belief perseverance, cognitive inertia is the perseverance of how one interprets information, not the perseverance of the belief itself. Cognitive inertia has been causally implicated in disregard of impending threat to one's health or environment, enduring political values and deficits in task switching. Interest in the phenomenon was largely taken up by economic and industrial psychologists to explain resistance to change in brand loyalty, group brainstorming and business strategi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Knowledge Inertia
Knowledge inertia (KI) is a concept in knowledge management. The term initially proposed by Shu-hsien Liao comprises a two dimensional model which incorporates experience inertia and learning inertia. Later, another dimension—the dimension of thinking inertia—has been added based on the theoretical exploration of the existing concepts of experience inertia and learning inertia. One of the central problems in knowledge management related to organizational learning is to deal with "inertia". Besides, individuals may also exhibit a natural tendency of inertia when facing problems during utilization of knowledge. Inertia in technical jargon means inactivity or torpor. Inertia in organizational learning context may be referred to as a slowdown in organizational learning-related activities. In fact, there are many other kinds of organizational inertia: e.g., innovation inertia, workforce inertia, productivity inertia, decision inertia, emotional inertia besides others that have diff ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Inertia
In psychology and sociology, social inertia is the resistance to change or the endurance of stable relationships in societies or social groups. Social inertia is the opposite of social change. Overview The idea of social inertia can be traced back to French sociologist Pierre Bourdieu. According to Bourdieu, each person occupies a position in a social space, which consists of his or her social class as well as social relationships and social networks. Through the individual's engagement in the social space, he or she develops a set of behaviors, lifestyle and habits (which Bourdieu referred to as habitus) which often serve to maintain the status quo. Thus, people are encouraged to "accept the social world as it is, to take it for granted, rather than to rebel against it, to counterpose to it different, even antagonistic, possibles." This can explain the continuity of the social order through time. Sociologists have examined how economic and cultural heritage is transmitted acro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cognitive Biases
A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. Individuals create their own "subjective reality" from their perception of the input. An individual's construction of reality, not the objective input, may dictate their behavior in the world. Thus, cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, or what is broadly called irrationality. Although it may seem like such misperceptions would be aberrations, biases can help humans find commonalities and shortcuts to assist in the navigation of common situations in life. Some cognitive biases are presumably adaptive. Cognitive biases may lead to more effective actions in a given context. Furthermore, allowing cognitive biases enables faster decisions which can be desirable when timeliness is more valuable than accuracy, as illustrated in heuristics. Other cognitive biases are a "by-product" of human processing limitations, resulting ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
