Why do we find it hard to cut our losses?
Knowing when to cut our losses is a skill that’s important in all areas of our lives. Sandra Kanthal examines why we should learn to avoid the 'sunk cost' fallacy.
At some point in our lives, we’re all likely to make an investment, in time or money or effort, which goes wrong. But, when we know we’re in a hole, why do we find it so hard to stop digging? Realising when we should cut our losses is a decision making skill that’s important in all areas of our lives. In this Why Factor Sandra Kanthal examines why we should all learn how to avoid the 'sunk cost' fallacy.
Spencer Christian - author, You Bet Your Life
Wandi Bruine de Bruin - professor of behavioural decision making, Leeds University Business School
Dean Yeong - Malaysian writer and entrepreneur
Lior Sheffer – post-doctoral fellow, Department of Political Science, University of Toronto
Christopher Olivola - assistant professor of marketing, Tepper School of Business, Carnegie Mellon University
Claire Gregory – co-founder, The Female Fitness Academy
Presented and produced by Sandra Kanthal
Editor: Richard Knight