briefly discuss and give examples difference between status quo bias and omission bias
Status quo bias refers to the tendency for individuals to prefer things to stay the same rather than making changes, even if the change may be beneficial. This bias can lead people to resist new ideas, innovations, or reforms because they are comfortable with the current state of affairs.
For example, an individual may be offered a new investment opportunity that has the potential to earn them more money than their current investments. However, because they are comfortable with their current investments and the perceived risk associated with change, they may choose to stick with the status quo.
Omission bias, on the other hand, refers to the tendency for individuals to perceive harmful actions as worse than harmful inactions. This bias can lead people to avoid taking action, even if inaction may result in greater harm than taking a risky action.
For example, a doctor may choose not to recommend a potentially life-saving surgery to a patient because they fear the risks associated with the procedure, even though the surgery may provide the best chance for the patient's survival. In this case, the doctor's omission bias may prevent them from recommending a course of action that could ultimately benefit the patient.