Irenaeus, Siteadmin, Check users, oversight, Administrators
351,420
edits
Changes
Jump to navigation
Jump to search
Line 50:
Line 50: + + + +
→Status quo emotional bias and other emotional biases related to resistance to change
''See also:'' [[Emotional bias]]
''See also:'' [[Emotional bias]]
An emotional bias is a bias which stems from impulse or intuition (Emotional biases tend to result from reasoning influenced by feelings).<ref>[https://www.cfainstitute.org/en/membership/professional-development/refresher-readings/behavioral-biases-individuals#:~:text=Emotional%20biases%20include%20loss%20aversion,of%20biases%20on%20financial%20decisions. The Behavioral Biases of Individuals], CFA Institute</ref> Emotional biases are harder to control for many people because they are based on feelings, which can be difficult to change for some individuals.<ref>[https://www.cfainstitute.org/en/membership/professional-development/refresher-readings/behavioral-biases-individuals#:~:text=Emotional%20biases%20include%20loss%20aversion,of%20biases%20on%20financial%20decisions. The Behavioral Biases of Individuals], CFA Institute</ref>
The status quo [[emotional bias]] is "in which people do nothing instead of making a change. People are generally more comfortable keeping things the same than they are with change and thus do not necessarily look for opportunities where change may be beneficial. In the absence of an apparent problem requiring a decision, the status quo is maintained. If given a situation where one choice is the default choice, people will frequently let that choice stand rather than opting out of it and making another choice."<ref>[https://www.echowealthmanagement.com/blog/overcoming-six-emotional-biases-to-have-a-successful-investing-experience Overcoming Six Emotional Biases to Have a Successful Investing Experience]</ref>
The status quo [[emotional bias]] is "in which people do nothing instead of making a change. People are generally more comfortable keeping things the same than they are with change and thus do not necessarily look for opportunities where change may be beneficial. In the absence of an apparent problem requiring a decision, the status quo is maintained. If given a situation where one choice is the default choice, people will frequently let that choice stand rather than opting out of it and making another choice."<ref>[https://www.echowealthmanagement.com/blog/overcoming-six-emotional-biases-to-have-a-successful-investing-experience Overcoming Six Emotional Biases to Have a Successful Investing Experience]</ref>
Other common biases related to resistance to change are: "loss aversion, overconfidence, self-control (People fail to act in pursuit of their long-term, overarching goals because of a lack of self-discipline), [https://www.echowealthmanagement.com/blog/overcoming-six-emotional-biases-to-have-a-successful-investing-experience status quo], [https://www.investopedia.com/terms/e/endowment-effect.asp endowment effect], and [https://www.echowealthmanagement.com/blog/overcoming-six-emotional-biases-to-have-a-successful-investing-experience regret aversion]. Understanding and detecting biases is the first step in overcoming the effect of biases on financial decisions."<ref>[https://www.cfainstitute.org/en/membership/professional-development/refresher-readings/behavioral-biases-individuals#:~:text=Emotional%20biases%20include%20loss%20aversion,of%20biases%20on%20financial%20decisions. The Behavioral Biases of Individuals], CFA Institute</ref>
== Rapid technological changes: Rapid development of new forms of modern technology and its effect on the world and its societies ==
== Rapid technological changes: Rapid development of new forms of modern technology and its effect on the world and its societies ==