Freakonomics Radio occasionally produces special hour-long podcasts, twice the length of the typical weekly podcasts presented by Stephen Dubner and Steve Levitt. "The Upside of Quitting" originally aired in 2011, but it's continued to garner hits and attention, and earlier this spring, it was re-broadcast.
In this podcast, Levitt and Dubner rely on a plethora of experts to help debug the "winners never quit" idiom and propose "sometimes quitting is strategic, and sometimes it can be your best possible plan."
Listen to the full podcast (or download it for your MP3 player) HERE. Or, read the transcripts HERE.
Things to Think About
Levitt and Dubner's podcasts are rooted in economics. In this podcast we are introduced to two economic concepts: “sunk cost” and “opportunity cost.” According to Dubner:
“Sunk cost” is about the past — it’s the time, or money, or sweat equity that you’ve put into something, which makes it hard to abandon. “Opportunity cost” is about the future. It means that for every hour or dollar you spend on one thing, you’re giving up the opportunity to spend that hour or dollar on something else — something that might make your life better. If only you weren’t so worried about the sunk cost. If only you could quit."For this podcast, the crew called upon Hal Arkes, among many experts. He’s a psychology professor at Ohio State University and expands upon the "sunk cost fallacy." This is when one you tell yourself you can't quit because you've spent too much time or money already. Arkes claims this is an adult syndrome; children are experts at dumping the "sunk costs" and moving on.
Ponderings
Are you on board? Is it better sometimes to quit and cut the losses? How do you decide when to stick it out and when to throw in the towel?
Can you think of an example when you've come out ahead by quitting? Or a situation when you wish you'd had not quit?
What lessons can we take from this podcast for our students?