Hall Arkes

Ohio State University

Inaction Inertia

The concept of inaction inertia is that after an initial opportunity is bypassed, the likelihood that subsequent similar actions will be undertaken is sharply reduced.  For example, if I fail to take advantage of a bargain opportunity such as a half-price sale, I then refrain from buying that product later even if it is offered again at a very good price.  I'll present a study or two implicating regret as the fuel for inaction inertia: the more I regret failing to take advantage of the first opportunity, the more likely it will be that I'll shun the second opportunity.  I'll then present some new data suggesting that anchoring may be another contributor to inaction inertia: The low bargain price of the first opportunity may signal low value, which in turn discourages purchasing it at the second opportunity.  Finally I'll seek some astute suggestions from the audience on how to address reviewers' criticisms of the research.