Status Quo Bias and the Number of Alternatives: An Empirical Illustration from the Mutual Fund Industry


Kempf, Alexander ; Ruenzi, Stefan



DOI: https://doi.org/10.1207/s15427579jpfm0704_3
URL: http://www.tandfonline.com/doi/abs/10.1207/s154275...
Additional URL: http://www.cfr-cologne.de/download/workingpaper/cf...
Document Type: Article
Year of publication: 2006
The title of a journal, publication series: The Journal of Behavioral Finance
Volume: 7
Issue number: 4
Page range: 204-213
Place of publication: Philadelphia, Pa. [u.a.]
Publishing house: Taylor & Francis
ISSN: 1542-7560 , 1542-7579
Publication language: English
Institution: Business School > Internat. Finanzierung (Ruenzi)
Subject: 330 Economics
Abstract: We examine the extent of the status quo bias (SQB) in a real-world repeated decision situation. Individuals who are subject to the SQB tend to choose an alternative that they chose previously (i.e., their status quo), even if it is no longer the optimal choice. We examine the U.S. equity mutual fund market and find strong evidence of the SQB. Furthermore, the SQB is more severe in segments that have more funds to choose from. Thus, we deliver the first empirical confirmation of the experimental results of Samuelson and Zeckhauser [1988] that the SQB depends positively on the number of alternatives.

Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.




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Kempf, Alexander ; Ruenzi, Stefan ORCID: 0000-0002-6492-1701 (2006) Status Quo Bias and the Number of Alternatives: An Empirical Illustration from the Mutual Fund Industry. The Journal of Behavioral Finance Philadelphia, Pa. [u.a.] 7 4 204-213 [Article]


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