In behavioral economics,the status quo bias is often accompanied by ________,which exists when a person places more value on avoiding losses than attempting to realize gains.
A) loss aversion
B) gain aversion
C) the ambiguity effect
D) the availability heuristic
E) the bandwagon effect

Question

Quizplus · Accepted Answer

Loss aversion refers to the tendency of people to place a higher value on avoiding losses than on achieving gains. It is often associated with the status quo bias, which is the preference for things to remain as they are, because changing requires effort and may involve risk. Together, these biases can lead people to stick with familiar options even if there are better alternatives available.

In Behavioral Economics,the Status Quo Bias Is Often Accompanied by ________,Which