The Sunk Cost Fallacy And Self Improvement - Part 1
April 9, 2008 | In Changing Mindset - Action Steps |
Table of contents for Sunk Costs
- The Sunk Cost Fallacy And Self Improvement - Part 1
- The Sunk Cost Fallacy And Self Improvement - Part 2
You have most likely heard of the “sunk cost fallacy” previously. This is the feeling that you must stick with something because you’ve already spent so much money on it. You start a business and it’s clearly not going anywhere, but you keep at it because you’ve already spent so much on it. You go to a concert you didn’t want to because you already bought tickets and didn’t want to “waste the money.”
The sunk cost fallacy is usually applied to financial decisions; after all, it is the “sunk cost” fallacy. However, the sunk cost fallacy can apply to other self improvement endeavors as well. In Self Improvement Sucks, I talked about how we jump from method to method, looking for the one that has the least amount of pain involved. However, the opposite can also be true - we’ll hold onto a method that isn’t working because we’ve put so much effort into it - it feels like if only we could put in a little bit more it would work.
How The Sunk Cost Fallacy Applies To Self Improvement
1. Diet. There are thousands of diet books and pills available. Much of this is because everyone wants a quick fix. However, part of the reason there are so many is because everyone is different and different methods work for different people.
Many of us try a new diet because we hear about it on TV and because it’s endorsed by a celebrity. But many of us also try a new diet because it’s endorsed by a friend. We figure it worked for them, so it should work for us. So, we get the book, buy the pills or bars and talk about it with our friends. We keep at it because we see others around us have success, even if isn’t giving us the same level of success.
I once knew a couple that was on the Atkins Diet. They were both overweight, and I commended them for working on weight loss. However, in the months I spent with them, it didn’t look like they were losing at all. They even commented on this, but they stuck with it. Why? “Because (she) lost so much weight when she did it before.”
I’ve also seen a lot of people try Weight Watchers. I was one myself. I signed up and stuck with the program several times, the last time for about eight months. I would lose weight, but then it would stop working for me. I realize now why it didn’t work for me long term, but at the time, I couldn’t figure out why it would work for a bit, then stop working. I was so sure that since it had worked before, and since I’d seen so many others succeed - and since I’d spent so much time and money already - that I had to stick with it.
This commitment to one particular weight loss method, without the desired level of success, is the sunk cost fallacy in action.
2. Exercise. There are probably as many exercise books and tapes as there are diet books (although many diet books have exercise in them as well.) There is Tae Bo, Kickboxing, Cardio Pump (aerobics with light weights), aquaerobics - the list goes on. Again, they work for some people and not for others for a variety of reasons.
We follow a routine because it worked for a certain celebrity to get ready for their latest blockbuster movie. Or, we take a fitness class because we want to support a friend.
But what if we hate the class? What if we find we can’t do the exercises as described in the book? Many give up, but others stick with it. Maybe we don’t want to hurt our friend’s feelings. Maybe we figure that we are “missing something” and keep doing it because if it worked for ____ (insert celebrity’s name here), it should work for us. After all, it’s only minutes a day and uses equipment we already have at home.
Many of us, myself included, stick with a particular method because we feel guilty that we keep bumping around and not sticking with any one thing. I found a method that was giving me results, but it took too much time. I still stuck with it until the time constraints overwhelmed me. I still felt guilty about it and whenever I could I would return to the same routine.
3. Therapy. Finally, what about psychotherapy? As I’ve mentioned before, I’ve been from one therapist to another, one was a cognitive behavior therapist and the others were more traditional “talk therapy.” Even though I knew early on in the sessions with the first therapist that things weren’t going that well - I kept with it. I figured it was easier to keep going than to find someone new.Many of us know that “talking to someone” can help us. Yet, I’m always amazed when I hear about someone who has “been in therapy for years.” Therapy that needs to take years seems to me to not be working.
In this case, maybe the person is making progress, but they have more problems than the average person. However, just maybe they are buying into the idea that they put so much in already, they can’t give up now. Sunk cost fallacy again.
Continued in Part 2, coming tomorrow, where I discuss why we give in to the sunk cost fallacy and how we can combat it. Please stay tuned for the next installment and leave me any comments or thoughts below in the meantime.
Photo Credits: Coins by PPDIGITAL; Diet Cokes by diaper; Exercise by mikebaird
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Very interesting, Cathy.
Have you read about the principles of “Commitment and Consistency”? Do a Google search for this - Robert Cialdini put out a great book on the topic (titled: Influence).
It looks at some extreme case studies - including alien landing cults.
(The Weight Watchers example you raised looks like “Social Proof” too - also raised in the book)
Interesting read.
I enjoyed your insights on sunk costs. For me personally, it’s financial cost in a business venture that isn’t working… Eventually I end up doing nothing out of confusion and internal conflict.
Brent,
First, thank you for your comment! I appreciate all new voices on the blog!
Second, I had not previously heard of the “Commitment and Consistency” principles. However, as you suggested, I did a quick Google search. Admittedly, I only read a brief description of the principles and I do agree to some extent. However, these principles don’t, in my mind, jibe with the idea of “sunk cost fallacy.”
The sunk cost fallacy really deals with how you approach something from your own point of view. It deals with why we continue to do something that isn’t working. There is, of course, an element of how we will look to others, but for the most part it is how we deceive ourselves (I go into this in more detail in part 2.)
It appeared to me that the Commitment and Consistency is more about an idea that starts with us, but is taken over by others. Even if we realize it’s not working for us, we still persist because it’s really no longer in our control.
Maybe I didn’t understand the full implications of Commitment and Consistency, but that’s my initial take on the subject.
As for financial cost in a business venture, I agree that this is the main application of the principle of sunk cost. However, given that business ventures are based on the actions and emotions of people, not just systems, the sunk cost fallacy is pretty easy to extend to other areas of our life as well.
Thanks again for stopping by and for the chance to debate!
Thanks for this. I think it is very true. Looking forward to the next instalment.