Evidence receipt / evaluation
Published · transcript-backedDaniel Kahneman: evaluation
19 Dec 2018 Conversations with Tyler Daniel Kahneman on Cutting Through the Noise
“Sunk cost is a fairly specific thing. It is that you’re putting a different value on a move or an investment that you make because of investment that you have already made than you would if you were looking at that de novo.”
Source trail
Everything needed to verify it.
- Speaker
- Daniel Kahneman
- Attribution
- Verified speaker
- Claim type
- evaluation
- Recorded
- 19 Dec 2018
- Publisher
- Conversations with Tyler
Transcript context
…You stay loyal to your friends. You become more trustworthy. When we talk about sunk costs, we talk about something else. It is not true that growing attachment to things that you’re familiar with and that you like and love and increasingly trust — that’s not sunk costs. That’s something else. Sunk cost is a fairly specific thing. It is that you’re putting a different value on a move or an investment that you make because of investment that you have already made than you would if you were looking at that de novo. Sunk costs, by and large, I think, are a negative. We know that when you get a new CEO in place in organizations, the new CEO has one big advantage. He’s got no sunk costs with respect to poor ideas that the exiting CEO had and couldn’t let go of. If you had a perfectly rational, pure Bayesian, would anyone else trust that person?…
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