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Savanna Combs opened a clothing boutique two years ago. Unfortunately, the boutique failed after 18 months. Savanna attributes the failure of her boutique to that fact that her employees couldn't adjust quickly enough to their new roles and because her boutique lacked a "track record" with outside buyers and sellers, which made it difficult to form partnerships and make sales. Savanna suffered from what research call the:
Omission Bias
The tendency to take whatever course of action does not require you to do anything (also called the default option).
Status Quo Bias
A cognitive bias favoring the existing state of affairs or the current baseline (the "status quo"), often leading to resistance against change.
Risk Aversion
A behavioral trait or tendency to avoid taking risks, preferring options that are perceived as safer or have more predictable outcomes.
Error Management Theory
A theory that suggests humans have evolved biases in judgment and decision-making processes to minimize the cost of errors in uncertain situations, favoring the less costly error.
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