Many of us who have studied economics are familiar with the sunk-cost fallacy. If not, it can most simply be explained as the fallacy of putting value on time and/or money which you have already spent.
Ex: Continuing to stay at a job you hate because you feel that you have already invested too much time in it, when decisions should really be made at the margin because that time has already been wasted.
However, did you know that people are much more able to overcome the temptation of the sunk-cost fallacy through meditation?
Recent research (abstract) conducted by researchers Andrew C. Hafenbrack, Zoe Kinias, and Sigal Barasade shows that just 15 minutes of such mindful meditation can reduce one's urge to fall victim to the sunk-cost fallacy. In two experiments involving a few hundred undergrads, breathing-based mindfulness meditation significantly increased vulnerability to making decisions off the margin. In the first study, 78% of participants who underwent the meditation resisted the sunk-cost bias, whereas only 44% of those who did not undergo the meditation did. In the second study, 53% of those who meditated resisted the sunk-cost fallacy, whereas only 29% who did not meditate could resist it.
In both studies then, the risk of falling victim to the sunk-cost fallacy dropped by the large amount of 43%. So, when you're getting ready to make important life decisions, just remember that a mere 15 minutes of prior meditation could help you make a more efficient decision.
Link to article: http://freakonomics.com/2014/01/21/meditating-on-those-sunk-costs/
-Matt Rutley
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