Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57747
Authors: 
Kempf, Alexander
Ruenzi, Stefan
Year of Publication: 
2005
Series/Report no.: 
CFR Working Paper 05-07
Abstract: 
We examine the extent of the Status Quo Bias (SQB) in a real-world repeated decision situation. Individuals who are subject to a SQB tend to choose an alternative that was chosen previously (i.e. their status quo), even if it is not the optimal choice any more. We examine the US equity mutual fund market and find strong evidence for the existence of a SQB in this market. Furthermore, the SQB is more severe in segments where there are more funds to choose from. Thereby, we deliver the first empirical confirmation of the experimental result of Samuelson and Zeckhauser (1988), that the SQB positively depends on the number of alternatives.
Subjects: 
Status Quo Bias
Mutual Funds
Number of Alternatives
Performance Flow Relationship
JEL: 
G20
G23
Document Type: 
Working Paper

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