Default and Default bias: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Create page. Source: Center for Advanced Hindsight https://advanced-hindsight.com/blog/by-the-power-of-default/#:~:text=This%20tendency%20to%20stay%20in,stick%20with%20previously%20made%20decisions.)
 
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Failure to honour the terms of an agreement.
''Behavioural skills - cognitive bias''.


For example a loan agreement, or an obligation under a futures contract.
Default bias includes the tendencies to:
 
*Favour inaction over action; and
*Continue to support previously made decisions.
 
 
Examples include the substantial differences between the proportions of people making the identical choices, depending whether the choice is structured as an "opt in" or "opt out".
 
Opt out policy design results in signficantly higher participation rates, because of the default bias to take no action.
 
 
Default bias is also known as ''status quo bias''.




== See also ==
== See also ==
* [[Acceleration]]
* [[Affinity bias]]
* [[Credit event]]
* [[Anchoring]]
* [[Cross default]]
* [[Bandwagon bias]]
* [[Default fund]]
* [[Behavioural economics]]
* [[Deletion]]
* [[Behavioural skills]]
* [[Event of default]]
* [[Choice supporting bias]]
* [[Exposure At Default]]
* [[Cognitive bias]]
* [[Financial covenant]]
* [[Confirmation bias]]
* [[Forbearance]]
* [[Default]]
* [[Futures]]
* [[Diversity]]
* [[Grace period]]
* [[Dunning-Kruger effect]]
* [[Loss Given Default]]
* [[Emotional intelligence]]
* [[Loan agreement]]
* [[Executive coaching]]
* [[Materiality]]
* [[Hindsight bias]]
* [[Non-performing loan]]
* [[Impostor syndrome]]
* [[Risk]]
* [[Maslow's hammer]]
* [[Speculation]]
* [[Objectivity]]
* [[Variation margin]]
* [[Optimism bias]]
* [[Reactance bias]]
* [[Self-investment bias]]
* [[Self-serving bias]]
* [[Social bias]]
* [[Source bias]]
* [[Status quo bias]]
* [[Working effectively with others]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Commercial_drive_and_organisation]]
[[Category:Influencing]]
[[Category:Self_management_and_accountability]]
[[Category:Working_effectively_with_others]]
[[Category:Financial_management]]
[[Category:Knowledge_and_information_management]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Latest revision as of 22:26, 16 April 2021

Behavioural skills - cognitive bias.

Default bias includes the tendencies to:

  • Favour inaction over action; and
  • Continue to support previously made decisions.


Examples include the substantial differences between the proportions of people making the identical choices, depending whether the choice is structured as an "opt in" or "opt out".

Opt out policy design results in signficantly higher participation rates, because of the default bias to take no action.


Default bias is also known as status quo bias.


See also