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Download the Paper (128 K, PDF file) - February 1, 2005 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing.

ABSTRACT:
We show that status-quo bias combined with downward-sloping demand implies addictive behavior. This result does not depend on transitivity, a complete ordering, or even the existence of a preference relation that rationalizes choices.

SUGGESTED CITATION:
Donald Wittman, "Is Status Quo Bias Consistent With Downward Sloping Demand?" (February 1, 2005). Department of Economics, UCSC. Paper 590.
http://repositories.cdlib.org/ucscecon/590