We have ambiguity aversion. We don't like to move into things that are unknown. So if I stick, there's some range of possible outcomes. Some of them are good and some of them are bad. And I'm making some educated guesses about what the expected value of sticking is. But in either case, we have to make a guess. There's less uncertainty associated with it than we do switching to something that's unknown.
#424: We’re taught to stay in the game.
Persist. Be gritty. Try, try again.
But sometimes, the best decision is to walk away. Move on.
How do you know when that’s right? When should you double-down … and when should you fold?
Today’s guest, Annie Duke, won more than $4 million as a professional poker champion. She wrote the bestselling book Thinking in Bets and co-founded a nonprofit that teaches kids decision-making skills.
Her most recent book, “Quit: The Power of Knowing When To Walk Away,” teaches the behavioral science, mental models and recognition of cognitive biases needed to successfully quit.
It highlights real-world examples of startup founders, athletes, mountaineers, and entertainers who either quit – or didn’t – and explains how to make a wise, grounded choice.
She joins us on today’s episode to describe the forces that hold us back from quitting – and how to recognize when quitting could lead to a better life.
For more information, visit the show notes at https://affordanything.com/episode424
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