VI­CIOUS CY­CLE

The Gulf Today - Panorama - - WELL-BEING -

Have you ever felt stuck in a re­la­tion­ship that went sour or trapped in a job that no longer re­wards you but you just can’t seem to quit?

Meet the sunk cost ef­fect. This is the same rea­son we have trouble get­ting rid of clothes we no longer wear or mov­ing out of places we used to love that now drive us crazy.

A new pa­per pub­lished in the jour­nal Psy­cho­log­i­cal Science ex­plores our ten­dency to stay all in on a botched plan even when it flies in the face of ra­tio­nal de­ci­sion mak­ing.

Why do we in­sist on throw­ing good money (or time) af­ter bad?

“The sunk cost ef­fect is the gen­eral ten­dency for peo­ple to con­tinue an en­deav­our, or con­tinue con­sum­ing or pur­su­ing an op­tion, if they’ve in­vested time or money or some re­source in it,” Christo­pher Olivola, an as­sis­tant pro­fes­sor of mar­ket­ing at Carnegie Mel­lon’s Tep­per

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.