Wednesday, February 27, 2019

Sunken Cost Fallacy provides Behavioral Benefits?


                In Brian Sweis’s article, “Sensitivity to sunk costs in mice, rats, and humans, he sheds light on a topic that everyone deals with very frequently, but no one ever consciously thinks about.  This topic is the sunken cost fallacy.  This fallacy, in its simplest terms, is that one is less likely to quit doing an activity if they have spent a considerable amount of time doing it, even if it would make them happier or benefit them if they were to stop.  What Sweis did in his article was talk about his research involving multiple organisms and if the ‘sunken cost fallacy’ was held throughout species.  What he found was surprising; humans were not the only organisms to adhere to this fallacy, mice were as well.  For the mice and rats, he set up the Restaurant Row task.  This task involved 4 different ‘restaurants’ where a mouse would receive food, but only after a certain wait time period.  The time period could be adjusted to be longer or shorter, and whether the mouse decided to wait or continue was quantified in a graph.  What the results showed was that the amount of time waiting for food, or in the case of the humans, the entertaining video, directly correlated to the commitment of waiting till the end.  This data shows that sunken cost fallacy, is conserved across species, but the question is why?  What evolutionary advantage has kept sunken cost fallacy alive?
            In experiments conducted by Christopher Olivola, he suggests that adhering to the sunken cost fallacy is behavioral in its nature.  His experiment consisted of surveying various scenarios to participants and asking whether they would stay and wait for the end result or if they would quit and use their time in a more effective manner.  Of course these questions were veiled amongst other related questions in order to stop any bias from influencing it or letting the participants know the true meaning of the experiment. What he found was that people were less likely to walk away from other people’s sunken time as well.  For example, he states that in a hypothetical situation where a friend purchases an expensive cake and spends a lot of time delivering it to you, more than 50% of participants would eat it even if they reported being full or the cake was bad.  This answers one of the questions that Sweis article did not answer, why is it conserved.  Olivola’s research suggests that the sunk cost fallacy is conserved because of a thinking for others.  The results show that sunken time directly influences interpersonal behavior.  Though they do not elaborate on it, I believe that it can be a mechanism of survival in which one stays in good standings with others by appreciating other’s hard work.  This case, however, does not really apply to animals, who I believe would have little care for other’s hard work.  Maybe more research could be done involving related animals and the sunken cost fallacy, to see whether relatives would wait for the greater good of their species.
            In any case, understanding the sunken cost fallacy helps one avoid it.  Next time you catch yourself staying with something even if you do not like or are not benefiting it, drop it and do something that can actually do some good.
Citations:
Quick, Jazzy. “How the 'Sunk Cost Fallacy' Wreaks Havoc on Your Money and Your Mind.” Big Think, Big Think, 5 Oct. 2018, bigthink.com/jazzy-quick/sunk-cost-fallacy-a-new-twist-in-cognitive-bias.
Sweis, Brian M., et al. “Sensitivity to ‘Sunk Costs’ in Mice, Rats, and Humans.” Science, American Association for the Advancement of Science, 13 July 2018, science.sciencemag.org/content/361/6398/178.

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