The Topic: The Sunk Cost Fallacy
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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.
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