YANSS Podcast 035 – Sunk Costs and the Pain of Vain

The Topic: The Sunk Cost Fallacy

The Episode: DownloadiTunesStitcherRSSSoundcloud

BD

This episode is brought to you by Lynda, an easy and affordable way to help individuals and organizations learn. Try Lynda free for 7 days.

Every once in a while you will ask yourself, “I wonder if I should quit?”

Should you quit your job? Should you end your relationship? Should you abandon your degree? Should you shut down this project?

These are difficult questions to answer. If you are like me, every time you’ve heard one of those questions emerge in your mind, it lingered. It began to echo right as you woke up and just as pulled the covers over your shoulders. In the shower, waiting in line, in all your quiet moments – a question like that will appear behind your eyes, pulsating like a giant neon billboard until you can work out your decision.

Oddly enough, as a human being, that decision is often not made any easier when quitting is the most logical course of action. Even if it is obvious that it is no longer worth your time to keep going, your desire to plod on and your reluctance to quit are both muddled by an argumentative loop inside which you and many others easily get stuck.

The same psychological hooks that cost companies millions of dollars to produce products obviously destined to fail can also keep troops in harm’s way long past the point when the whole war effort should be brought to an end. It’s a universal human tendency, the same one that influences you to keep watching a bad movie instead of walking out of the theater in time to catch another or that keeps you planted in your seat at a restaurant after you’ve been waiting thirty minutes for your drinks. If you reach the end of the quest, you think, then you haven’t truly lost anything, and that is sometimes a motivation so strong it prolongs horrific, bloody wars and enormously expensive projects well past the point when most people involved in efforts like those have felt a strong intuition that no matter the outcome, at this point, total losses will exceed any potential gains.

In this episode of the You Are Not So Smart Podcast, we explore the sunk cost fallacy, a strangely twisted bit of logic that seems to pop into the human mind once a person has experienced the pain of loss or the ickiness of waste on his or her way toward a concrete goal. It’s illogical, irrational, unreasonable – and as a perfectly normal human being, you act under its influence all the time.

LINKS

DownloadiTunesStitcherRSSSoundcloud

Previous Episodes

Boing Boing Podcasts

Cookie Recipes

Liberal or conservative? Brain responses to disgusting images help reveal political leanings

The Genetic Fallacy

More on The Genetic Fallacy

SOURCES

  • Ariely, D. (2009). Predictably irrational, revised and expanded edition: The hidden forces that shape our decisions. Harper. (Amazon link)
  • Arkes, Hal R., and Peter Ayton. “The Sunk Cost and Concorde Effects: Are Humans Less Rational than Lower Animals?” Psychological Bulletin 125.5 (1999): 591-600. Print. (pdf)
  • Burthold, G. R. (2008). Psychology of decision making in legal, health care and science settings. Gardners Books. (Google Books link)
  • Busch, Jack. “Travel Zen: How to Avoid Making Your Vacation Seem Like Work.” Primer Magazine. Primer Magazine, Jan. 2009. Web. Mar. 2011. (link)
  • Gaming Can Make a Better World. By Jane McGonigal. TED Talks. TED Conferences, LLC, Feb. 2010. Web. Mar. 2011. (link)
  • Godin, Seth. “Ignore Sunk Costs.” Seth’s Blog. Typepad, Inc., 12 May 2009. Web. Mar. 2011. (link)
  • Höffler, Felix. “Why Humans Care About Sunk Costs While (Lower) Animals Don’t.” The Max Planck Institute for Research on Collective Goods, 31 Mar. 2008. Web. Mar. 2011. (pdf)
  • Indvik, Lauren. “FarmVille” Interruption Cited in Baby’s Murder.” Mashable. Mashable Inc., 28 Oct. 2010. Web. Mar. 2011. (link)
  • Kahneman, D. (2011). Thinking, fast and slow. Farrar, Straus and Giroux. (Amazon link)
  • Kushner, David. “Games: Why Zynga’s Success Makes Game Designers Gloomy.” Wired. Conde Nast Digital, 27 Sept. 2010. Web. Mar. 2011. (link)
  • Lehrer, Jonah. “Loss Aversion.” ScienceBlogs. ScienceBlogs LLC, 10 Feb. 2010. Web. Mar. 2011. (link)
  • Schwartz, Barry. “The Sunk-Cost Fallacy Bush Falls Victim to a Bad New Argument for the Iraq War.” Slate. The Slate Group, 09 Sept. 2005. Web. Mar. 2011. (link)
  • Shambora, Jessica. “‘FarmVille’ Gamemaker Zynga Sees Dollar Signs.” CNN Money. Cable News Network, 26 Oct. 2009. Web. Mar. 2011. (link)
  • Vidyarthi, Neil. “City Council Member Booted For Playing Farmville.” SocialTimes. Web Media Brands Inc., 30 Mar. 2010. Web. Mar. 2011. (link)
  • Walker, Tim. “Welcome to FarmVille: Population 80 Million.” Independent. Independent Digital News and Media, 22 Feb. 2010. Web. Mar. 2011.
  • “Why Zynga’s Success Makes Game Designers Gloomy | Discussion at Hacker News.” Hacker News. Y Combinator, 7 Oct. 2010. Web. Mar. 2011 (link)
  • Wittmershaus, Eric. “Facebook Game’s Cautionary Tale.” GameWit. Press Democrat Media Co., 04 Aug. 2010. Web. Mar. 2011. (link)
  • Yang, Sizhao Zao. “How Did FarmVille Take over FarmTown, When It Was Just a Exact Duplicate of FarmTown and FarmTown Was Released Much Earlier?” Quora. Quora, Inc., 01 Jan. 2011. Web. Mar. 2011. (link)
About these ads

YANSS Podcast 032 – Seeing willpower as powered by a battery that must be recharged

The Topic: Ego Depletion

The Episode: DownloadiTunesStitcherRSSSoundcloud

Stains the dog abstains from cupcakes on "It's Me or The Dog" on Animal Planet

Stains the dog abstains from cupcakes on “It’s Me or The Dog” on Animal Planet

One of my favorite tropes in fiction is the idea of the perfect thinker – the person who has shed all the baggage of being an emotional human being and could enjoy the freedom and glory of pure logic, if only he or she could feel joy.

Spock, Data, Seven of Nine, Sherlock Holmes, Mordin Solus, Austin James, The T-1000 – there are so many variations of the idea. In each fictional world, these beings accomplish amazing feats thanks to possessing cold reason devoid of all those squishy feelings. Not being very good at telling jokes or hanging out at parties are among their only weaknesses.

It’s a nice fantasy, to imagine without emotions one could become super-rational and thus achieve things other people could not. It suggests that we often see emotion as a weakness, that many people wish they could be more Spockish. But the work of neuroscientists like Antonio Damasio suggests that such a thing would be a nightmare. In his book, “Decarte’s Error” he describes patients who, because of an accident or a disorder, are no longer able to feel silly or annoyed or hateful or anything else. If they can, those feelings just graze them, never taking hold. Damasio explains that these patients, emotionally barren, are rendered powerless to choose a path in life. They can’t ascribe value to anything. Their world is flat. Despite remaining very intelligent and able to carry on conversations, they no longer make good decisions. Former business owners will lose all their money on bad investments. People who used to work from home will become lost in constantly reorganizing their shelves. Not only are their decisions flawed, but reaching conclusions becomes an excruciating process. When Damasio handed one of these patients two pens, one red and one blue, and asked him to fill out a questionnaire, the man was lost. To choose red over blue using logic alone took about half an hour. Every pro and con was listed, every branching possibility of future outcomes considered. Damasio wrote that “when emotion is entirely left out of the reasoning picture, as happens in certain neurological conditions, reason turns out to be even more flawed than when emotion plays bad tricks on our decisions.” Judgments and decisions corrupted by bias and passion are the only way we ever get anything done.

Continue reading

New York City’s Placebo Buttons and The Post Hoc Fallacy

https://www.youtube.com/watch?v=ZpYP7tfqr8g&feature=youtu.be

I’m so excited to reveal the latest book trailer for my new book, You Are Now Less Dumb. Here is a link to learn more about the book.

Once again, the fantastic production crew at Plus3 Video created this wonderful video. You can learn more about them at this link.

You can see all the videos we’ve made together right here on the YANSS Youtube Channel: link to videos.

The video is inspired by a chapter in the book which mentions placebo buttons, a topic covered here on YANSS a few years back which you can read about at this link.

YANSS Podcast – Episode Eight – The Psychology of Video Games

The Topic: Video Games

The Guest: Jamie Madigan

The Episode: Download – iTunes – Stitcher – RSS – Soundcloud

Last of Us Friend or Foe

A scene from “The Last of Us”

“The Last of Us” is a video game, a work of interactive art, and a question will arise in the back of your mind while playing, “What would I do in this situation?” and the answer will make you feel emotions no other art form can elicit.

The game is set in a post-apocalyptic United States, 20 years after the fall of mankind, in a world nature has mostly reclaimed, where resources are few and trust is scarce. Hope is the commodity in shortest supply. Most everyone has given up on rebuilding the old world. This is just how it is now. Every encounter with strangers pings that most primal of judgments under uncertainty: “Is this a potential friend or foe?”

Familiar? Sure, it’s a theme being explored all over in fiction. Something in the zeitgeist has us fretting over these things again, but in a game you have the opportunity to actually test yourself in a virtual reality, to see what you would do when the stakes are as high as possible. Would you trust others? Would you help strangers? Would you kill to survive?

In addition, “The Last of Us” explores something the gaming world calls ludonarrative dissonance. Many modern games have detailed stories with great writing and well-acted scenes interspersed between what amounts to bursts of mass murder. It can make a player feel like his or her agency in the world has been stolen by the storyteller, that the characters you are asked to portray live in two realities, one you control and one you do not. This can feel really off-putting when the characters are jaunty, smarmy, and noble in the cutscenes, but then you are asked to use those people to do terrible things. In an effort to solve this problem, Naughty Dog, the developers of “The Last of Us”, crafted an experience where you and the character feel justified when pushed to do harm, but afterward you, the gamer, feel disgusted with yourself and horrified by the power of the situation to change your behavior and shift your moral center. You find yourself quickly learning to avoid violence – a behavior I was astonished to see evoked in myself inside a game world, and was thrilled to experience. That’s something you won’t get watching “Breaking Bad.”

Watch a teaser trailer showing a friend-or-foe scenario here: Link

487508_10152254584619057_1846725181_a

In this episode of the YANSS podcast, we explore games and their potential to reveal our self delusions. I interview Jamie Madigan, the curator of psychologyofgames.com, who writes about the behaviors and cognitions that games both exploit and uncover. It’s a great interview. We discuss everything from the motivational nudging in “Candy Crush Saga” to the power of endowed progress when endorsing people on LinkedIn. Please forgive us for geeking out so hard during it. I promise, non-gamers will learn plenty in this episode. Links to the things mentioned in the episode are at the bottom of this post.

After the interview, as in every episode, I read a bit of self delusion news and taste a cookie baked from a recipe sent in by a listener/reader. That listener/reader wins a signed copy of the new book, You Are Now Less Dumb, and I post the recipe on the YANSS Pinterest page. This episode’s winner is Violet Sinnarkar who submitted a recipe for white chocolate oatmeal cookies. Send your own recipes to david {at} youarenotsosmart.com.

Screen Shot 2013-09-01 at 12.51.51 PM

White Chocolate Oatmeal Cookies

Links:

Download – iTunes – Stitcher – RSS – Soundcloud

Boing Boing Podcasts

Psychology of Games

Papers, Please

Spent

Newsgaming

Underground Railroad Game

The Walking Dead 

Narco Guerilla 

The Last of Us

Candy Crush Youtube Video 1

Candy Crush Youtube Video 2

Candy Crush Youtube Video 3

Candy Crush Youtube Video 4

The study concerning the cognitive load of poverty

Formal Sweatpants Procrastination Comic

Josh Mecouch over at Formal Sweatpants created a new comic based on a YANSS post a while back on procrastination. Thanks, Josh. This is great. That post discussed the concept of future self vs. present self, and how present bias affects your ability to predict how you will behave and make choices over time.

You may see some future collaborations between YANSS and FS, stay tuned. Until then, here is the comic:

Links:

Formal Sweatpants

Procrastination

Procrastination Video

Ego Depletion

The Misconception: Willpower is just a metaphor.

The Truth: Willpower is a finite resource.

Forever Alone by Lysgaard
(Source: Lysgaard)

In 2005, a team of psychologists made a group of college students feel like scum.

The researchers invited the undergraduates into their lab and asked the students to just hang out for a while and get to know each other. The setting was designed to simulate a casual meet-and-greet atmosphere, you know, like a reception or an office Christmas party – the sort of thing that never really feels all that casual?

The students divided into same-sex clusters of about six people each and chatted for 20 minutes using conversation starters provided by the researchers. They asked things like “Where are you from?” and “What is your major?” and “If you could travel anywhere in the world, where would you go?” Researchers asked the students beforehand to make an effort to learn each other’s names during the hang-out period, which was important, because the next task was to move into a room, sit alone, and write down the names of two people from the fake party with whom the subjects would most like to be partnered for the next part of the study. The researchers noted the responses and asked the students to wait to be called. Unbeknownst to the subjects, their choices were tossed aside while they waited.

The researchers – Roy F. Baumeister, C. Nathan DeWall, Natalie J. Ciarocco and Jean M. Twenge of Florida State, Florida Atlantic, and San Diego State universities – then asked the young men and women to proceed to the next stage of the activity in which the subjects would learn, based on their social skills at the party, what sort of impression they had made on their new acquaintances. This is where it got funky.

Continue reading