Summit Fever

Choiceology with Katy Milkman

Charles Schwab

Behavioral Economics, Society & Culture, Social Sciences, Decision Making, Charles Schwab, Business, Science, Investing, Dan Heath, Katy Milkman

4.8 • 1.4K Ratings

🗓️ 12 March 2018

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

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Summary

Imagine that you’ve put in effort toward a goal, but things haven’t quite worked out the way you hoped. Maybe your goal was more expensive than you expected; maybe it’s taking longer to reach than you thought. So the question is, do you double down and continue to work toward that increasingly difficult goal, or do you move on to something new? Do you fish or cut bait? On this episode of Choiceology with Dan Heath, we look at how past effort, time or expense can influence the way we make decisions moving forward—even when they shouldn’t. The episode begins on an auction house floor but quickly climbs to the top of the highest peak in the world. Along the way, you’ll see how common is the lure to continue no matter what, and how it affects all kinds of decisions, big and small. Professor Michael Roberto explains how to identify this bias in your day-to-day life. You’ll also find out how to fight back against the influence of this trap in a story about Intel CEO Andy Grove—one of the most successful business leaders of the 20th century. (0318-8VJ8)

Transcript

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0:00.0	I'm Dan Heath and this is Choiceology.
0:07.0	4 and a quarter.
0:09.0	425 to go 425, not 450, 450,
0:12.0	bidding at 4.50, 450, palm tree is in. It's a classic scene.
0:13.0	It's a classic scene.
0:17.0	The fast-talking auctioneer.
0:19.4	Detention mounts as the bids go higher.
0:22.8	Who has the nerve to see it through?
0:25.1	Who will win the coveted piece?
0:27.2	The rare painting, the famous sculpture, the delicate antique?
0:31.2	All right, 575, a 575, 575 is in Nastic Stahl.
0:35.2	If you've ever been part of a live auction, you know it's basically a form of psychological
0:39.7	hazing.
0:41.0	There are some forces in play that tempt us to make unwise decisions.
0:45.0	We're going to look at one of those forces in this episode.
0:48.0	Now in the warmth and safety of an auction house, this force might lead you to ask ask did I really just pay $350 for a
0:55.6	porcelain elephant figurine but the stakes are much much higher when the same
1:01.0	force afflicts you in the frigid death zone of the world's highest mountain. This is a choiceology, an original podcast from Charles Schwab.
1:20.0	It's a show that reveals hidden psychological forces,
1:23.0	forces that affect the way you make decisions about everything,
1:26.1	from where to take a vacation, to how often you go to the gym,
1:29.6	to how you run your business.
	...

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