Why do people stick to bad decisions?

Short Answer

People stick to bad decisions due to the sunk cost fallacy, wanting to justify past choices, or avoiding the emotional pain of admitting mistakes.

Detailed Explanation

Background

Sticking to bad decisions is a common and costly human behavior that can lead to wasted resources, missed opportunities, and prolonged negative outcomes. Despite evidence that a decision isn't working, people often persist, investing more time, money, or effort into failing choices. Understanding What is confirmation bias? reveals how people actively seek information that confirms their decisions are good, ignoring evidence that they should change course.

The tendency to stick to bad decisions reflects several psychological mechanisms that make it difficult to cut losses and change direction. These mechanisms—like the sunk cost fallacy and escalation of commitment—are powerful forces that can override rational decision-making. By understanding why people persist with bad decisions, we can recognize these patterns in ourselves and develop strategies to make more adaptive choices.

Scientific Explanation

People stick to bad decisions for several psychological reasons:

1. Sunk cost fallacy: People continue investing in bad decisions because they've already invested time, money, or effort. They feel that stopping would waste previous investments, even though those costs are already gone and can't be recovered.

2. Escalation of commitment: The more people invest in a decision, the more committed they become to it, even when evidence suggests they should stop. This commitment makes it harder to change course.

3. Justification and consistency: People want to justify their past choices and maintain consistency. Admitting a decision was wrong feels like admitting failure, so they persist to avoid this discomfort.

4. Loss aversion: People feel losses more strongly than gains. The pain of admitting a bad decision and cutting losses feels worse than continuing with a failing choice, even when continuing is objectively worse.

5. Confirmation bias: People seek information that confirms their decision was good and ignore or dismiss evidence that it was bad. This bias makes it harder to recognize when a decision isn't working.

6. Emotional attachment: People become emotionally attached to their decisions, especially when they've invested significant time or effort. This attachment makes it difficult to let go.

7. Social pressure: Admitting a bad decision can feel embarrassing or like losing face. Social pressure to maintain decisions can prevent people from changing course.

Understanding Why do people make impulsive decisions? reveals how initial poor decisions can lead to persistence, as people try to justify or salvage impulsive choices.

Real Examples

• A person continues investing in a failing business because they've already put in significant time and money, feeling that stopping would waste their investment, even though continuing loses more.

• Someone stays in an unhealthy relationship because they've invested years in it, feeling that leaving would waste that time, even though staying causes ongoing harm.

• A person continues pursuing a career path that isn't working because they've already invested in education and training, feeling they need to justify that investment.

• Someone continues using an ineffective product or service because they've already paid for it, feeling they need to get their money's worth, even though it's not meeting their needs.

• A person persists with a failing strategy or approach because changing would mean admitting they were wrong, which feels worse than continuing with a bad choice.

Practical Application

How to Apply

To avoid sticking to bad decisions:

1. Recognize sunk costs: Understand that past investments are gone and can't be recovered. Focus on future costs and benefits rather than past investments when deciding whether to continue.

2. Set decision review points: Regularly review decisions to assess whether they're working. Set specific times to evaluate progress and decide whether to continue or change course.

3. Seek objective feedback: Get input from others who aren't invested in your decision. External perspectives can help you see when it's time to change course.

4. Consider opportunity costs: Think about what you're giving up by sticking with a bad decision. What opportunities are you missing by persisting?

5. Separate ego from decisions: Recognize that changing a bad decision isn't a personal failure—it's adaptive learning. Your worth isn't tied to being right all the time.

6. Practice "kill criteria": Before making decisions, define conditions under which you'll change course. Having clear criteria makes it easier to recognize when to stop.

7. Learn from failure: View changing course as learning rather than failure. Every decision provides information, and adapting based on that information is wise, not weak.

Learning How to learn from failure? provides strategies for turning bad decisions into learning opportunities rather than sources of shame or regret.

How to Understand Others

When someone sticks to a bad decision:

• They're likely influenced by sunk cost fallacy, emotional attachment, or fear of admitting mistakes rather than rational evaluation. Their persistence reflects psychological mechanisms, not necessarily stubbornness.

• Consider that they may be seeking confirmation that their decision was right, focusing on positive information while ignoring negative evidence. This confirmation bias makes it hard to see when change is needed.

• Recognize that admitting a bad decision can feel like admitting failure or inadequacy. People may persist to avoid this emotional pain, even when changing would be better.

• Understand that pointing out that someone is sticking to a bad decision can trigger defensiveness. Instead, help them evaluate the decision objectively and consider future costs and benefits.

• When someone persists with a decision that affects you, focus on helping them see future consequences rather than criticizing past choices. Help them understand that changing course is adaptive, not failure.

Related Concepts

• How to make better decisions?
• Why do people make impulsive decisions?
• What is confirmation bias?
• How to learn from failure?
• What is the sunk cost fallacy?