The example given for status quo bias is not necessarily indicative of impaired rationality. That are such things as hysteresis effects:
Consider the case of the family subject to frequent power outages. They will learn to adjust. This could be as simple as buying an alternative power source (generator). Or, perhaps they adopt their life to perform activities requiring no power whenever their is an outage. If you have already bought a generator, it might not be worth your while to pay a higher price for a more reliable power supply. Whereas the family accustomed to a stable supply faces capital cost associated with making an adjustment.
The example given for status quo bias is not necessarily indicative of impaired rationality. That are such things as hysteresis effects:
Consider the case of the family subject to frequent power outages. They will learn to adjust. This could be as simple as buying an alternative power source (generator). Or, perhaps they adopt their life to perform activities requiring no power whenever their is an outage. If you have already bought a generator, it might not be worth your while to pay a higher price for a more reliable power supply. Whereas the family accustomed to a stable supply faces capital cost associated with making an adjustment.