Sunk Costs, "Experimental" Purchases and Conversation with Chris Chapman from Next Level Minds
Why are you more likely to attend a football game in the dead of winter in a blizzard if you paid for a ticket instead of gotten it for free? It's hard to let go of things we have invested in, even if continuing with them is not in our best interest. This is the phenomenon of sunk costs. In this week's podcast, Dan and Drew explore the psychology of sunk costs then talk about the virtues of thinking about some purchases as "experiments" so that we can more easily let go of them if they don't work out. Then, Drew has a conversation with Chris Chapman, the founder of the Next Level Minds podcast about money lessons he learned through the years. Thank you to: Chris Chapman: Next Level Minds Podcast Reference: Psychology of Sunk Costs Arkes, Hal & Blumer, Catherine. (1985). The psychology of sunk cost. Organizational Behavior and Human Decision Processes. 35. 124-140. 10.1016/0749-5978(85)90049-4.