The Wrath of Sunk Cost Bias

On Wednesday’s we usually do a short-distance fast pace run.

We woke up at 5:00 am and it was drizzling. It was cold and dark. 

I told my wife, we better skip running today. 

Madhu said, what’s the point of waking up at 5:00 am?

C’mon, don’t be lazy let us get ready.

I reluctantly started getting ready, watched the drizzle getting a little intense. 

Now we were both falling for the sunk cost bias. We had already invested the time and effort into this. 

We hit the road at 5:25 am.

As I started my watch, I had no GPS signal. Thanks to the big dark clouds right above me.

After a few minutes, I got the signal. We started off. The drizzle was showing some signs of receding.

After 2km or so, it started drizzling again. After 2.5k it was pouring. We stopped under a tree. 

Now we were arguing.

See I told you to skip, you don’t listen to me or my predictions!

After a few minutes, no luck. We headed home. Sat in the verandah and watched the rain. Madhu cursed it. I was frustrated too but I was reflecting on the fact that I was so damn right.

We decided to buy running jackets. The following day we headed to Decathalon. We not only bought the jackets but random paraphernalia which was not even needed. 

The next day it was time for a long run. Madhu was all prepared and anticipated rain so that she could wear the new waterproof jacket. I wasn’t so sure if it was going to rain.

I decided not to wear the jacket. If it doesn’t rain, the humidity will kill me, I thought.

4km, 6km, 8km, no rain.

The sun was up now. I could only imagine what Madhu was thinking and feeling now. 

10km, 11km no rain.

I finished my run at 12k. Saw Madhu walking towards home. She was not wearing the jacket. Obviously, she did not enjoy the run.

We walked home joked and laughed about the whole episode. 

We (especially Madhu) had fallen prey to the sunk cost fallacy. 

Running goal is a trivial matter but sunk cost fallacy has the tendency to do much worse. 

Individuals commit the sunk cost fallacy when they continue a behavior or endeavor as a result of previously invested resources (time, money, or effort)

I bet you must have gone through similar episodes in your life.

Sometimes it is just ok to quit and write off your losses. 🙂

#bias#perspective#decisionmaking#choices#lifeadvice

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