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The Science Behind Our Stubbornness: A Double Barrier to Change

Status quo bias refers to the preference for the familiar, which causes people to stick with what they already have rather than trying something new. Psychologists believe this bias comes from a deep-seated desire for security and predictability — when something feels familiar, it often feels “safer.”

Take someone who takes the same route to work each day. Even though they know of a new shortcut that could shave off a few minutes from their journey, they may avoid it because they’re already used to their current route. Since they know the familiar path well, they may stick with it even at the expense of time. 

Meanwhile, the endowment effect, quite a similar phenomenon, causes people to overvalue things simply because they own them or are invested in them in any way, regardless of the item’s objective worth. This effect becomes even stronger when significant time or resources have been invested, making it harder to let go, even when a replacement would be more practical.

Imagine someone who owns an old car that requires frequent, costly repairs. Each repair strengthens their attachment, as they feel the time and money spent must add to the car’s worth. The time, effort, and money they've put into keeping it running make it seem more worthwhile to keep, even though, from a financial perspective, it’s a poor investment. The car’s market value continues to drop, and the frequent repairs cost more over time than investing in a newer, more reliable model would. This ongoing cycle makes it harder for the owner to recognize that holding onto the car isn’t truly cost-effective.

Together, status quo bias and the endowment effect can create a powerful resistance to change. The familiarity of the status quo provides comfort, while the endowment effect inflates the perceived value of past choices.

Cash is King?