Suppose Yasmin buys a new house and calls the utility company to turn on the electricity. Yasmin is assigned an energy provider that produces electricity from burning coal. She is allowed to choose a different provider that uses clean energy sources at a later date. Yasmin is likely to _______ based on the influence of _______.
A)switch to a new provider; loss aversion
B)switch to a new provider; the endowment effect
C)stick with the assigned provider; the commitment effect
D)stick with the assigned provider; status quo bias

Question

Quizplus · Accepted Answer

Yasmin is likely to stick with the assigned provider due to the status quo bias, which is the preference to keep things the same or maintain a current or previous decision.

Suppose Yasmin Buys a New House and Calls the Utility