How to escape the sunk cost trap
Format: Pre-call and post-call Runtime: ~8 minutes Source: Behavioral economics , sunk cost fallacy, loss aversion (Kahneman and Tversky) Before I tell you about this call I want to tell you about a truck I drove for eleven years. It was a good truck early on. Solid. By year nine it had 240,000 miles on it and I'd put in two engines, a transmission, and more in parts and labor than the truck was worth. My wife asked me why I kept fixing it. I told her it was because I'd put so much into it I couldn't afford to walk away now. She said: Dave, that's not a reason. That's the reason people throw…
The skinny
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