Foundations of Law and Economics
Introductory
Status Quo Bias
A tendency to prefer an existing state or default position even when alternatives are available.
Why It Matters
Status quo bias explains why default rules, opt-in and opt-out structures, disclosure design, retirement savings rules, and consumer-contract settings can strongly affect behavior.
Selected Literature
A short list of directly relevant archive entries.
1991
Advanced
Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias
Daniel Kahneman, Jack L. Knetsch, and Richard H. Thaler
Journal of Economic Perspectives
1998
Advanced
A Behavioral Approach to Law and Economics
Christine Jolls, Cass R. Sunstein, and Richard H. Thaler
Stanford Law Review
2004
Advanced
Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving
Richard H. Thaler and Shlomo Benartzi
Journal of Political Economy
Related Cases
1707
Foundations of Law and Economics
Keeble v. Hickeringill
11 East 574, 103 Eng. Rep. 1127 (K.B. 1707)
Property protection, malicious interference, and incentives to make productive use of land.
1805
Foundations of Law and Economics
Pierson v. Post
3 Cai. R. 175 (N.Y. Sup. Ct. 1805)
First possession, capture rules, and the administrability of property rights in wild animals.
1854
Foundations of Law and Economics
Hadley v. Baxendale
9 Exch. 341, 156 Eng. Rep. 145 (1854)
Foreseeability, information disclosure, and limits on consequential damages for breach of contract.
1879
Foundations of Law and Economics
Sturges v. Bridgman
11 Ch. D. 852 (1879)
Nuisance, coming to the nuisance, and reciprocal conflicts over incompatible land uses.