The Effects Of Social Distance And Framing Effect On The Status Quo Bias

Status quo bias as a decision bias, is refers to the phenomenon that people tend to donothing or maintain their current or previous decision in decision making even face of newoptions.The status quo bias often leads our decision making deviation from rational. So it isnecessary to research its influencing factors so as to make people take effective measures toachieve reasonable decision. The domestic research on the status quo bias is almost in a blankstate, only a few reviewed research and lack of empirical research in china. Summed up theforeign literature, we found that the options in their experimental materials which is set inadvance. It means that subject tend to maintain the choice made by others or caused byexternal environment. In fact, it is the study of exogenously determined status quo bias.However, in our daily life, we more often face of maintain our own choice in individualdecision making. In order to make the situation more close to our real life, we designed twodecision tasks in experiment2to study of endogenously determined status quo bias. It expandthe research field of the status quo bias. In addition, former related researchs only involveindividual decision making and never refered for other decisions. Meanwhile, it is necessaryto exlore the effect of framing effect on the status quo bias. So we put social distance andframing effect as two variables into our experiment to explore their effect on exogenouslydetermined status quo bias and endogenously determined status quo bias.In study1, we tested the main influence of social distance and framing effect onexogenously determined status quo bias.The results show that when decision for self haveexogenously determined status quo bias. Social distance has main effect on exogenouslydetermined status quo.That is to say, People decision for self was more likely to maintain thechoice made by others or caused by external environment than decision for others.In study2, we tested the main influence of social distance and framing effect onendogenously determined status quo bias. The results show that when a negative frame haveendogenously determined status quo bias. Framing effect has main effect on endogenouslydetermined status quo.That is to say The people in loss situation was more likely to maintaintheir previous decision than gain. Finally, the experimental results provides some substantial suggestions for decisionmakers to take their decisions more rational.In our decision making, we should take someothers’ suggestions and avoid decision alone to reduce the pheonomenon of status quo bias.As we often say that a bystander is always clear-minded phenomenon.In addition, thepessimist are more likely to maintain their prior choice and unwilling to make a change intheir decision making because they often focus on bad thing.As the same time, the optimistare more likely to change the status quo more positive and make the more rational choice. Itreminds us that the decision makers should take a positive attitude to face our decisionmaking.