Status quo bias original, relying, recent

Matori

Different sources define this differently. Is status quo bias sticking to your original forecast, or is it relying too heavily on recent information?

spreads

sticking..

CFA4Techie

Status quo is inertia. Laziness. Investor wont care to even look at the information. This is emotional bias, no information processing, no forecasting, no memorizing, no probability calculation and no cognitive errors.

disiz64

status quo - has nothing to do with information / forecasts.. Remember it is an emotional bias.
Information / forecasts start to creep in with Cognitive biases.
Information - sticking to old - is Conservatism. (Belief perseverance)
Information - updating based on new - is Representativeness (Sample size neglect/Base rate neglect). (Belief perseverance)
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Another aspect to distinguish between Conservatism (belief pers) and Anchoring and Adjustment (Information processing) - In Anchoring and adjustment - you have new information about a company that its sales are going to be bad in the coming year/patent has not been approved / will be hurt by exports (things that tell you it is going down) - but past earning was 20$/share – you do not adjust that down.

dyga

how about in terms of defined contribtions when an investor sets his allocations and just leaves it?
thats status quo as well

kseniaru

that is true frankz888.

dmar

Another question: status quo trap (eco) is leaving variables as they are because of the past e.g 3% inflation, right? …i hate all these definitions and same wording in different chapters. Same for completion portfolio vs completion fund.

noel

what type of bias is presented when someone refuses to sell a losing position in hopes it will bounce back?

rohitdoshi

regret aversion

kim226

Should be gambler’s fallacy which is related to loss aversion