The Power of Knowing When To Walk Away
Afford Anything
00:00
Are You Quitting Things Too Soon?
We tend to poorly calibrate our quitting decisions in that when we get bad news, we tend to persevere too long. We quit things too early is when we're in what we would call the gains. A great experiment from Daniel Kahneman and Amos Tversky demonstrates this pretty well. In one case, I can give you the sure win of $100 or on a 50-50 proposition where you win 200 or lose zero, the expected value is exactly $100.
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