Hi Captain

You know the thing about sunk-costs, is that ultimately you need to make a decision about whether it's appropriate to throw good money after bad given the likely return on investment.

There's some interesting socio-economic research out of Harvard recently on the impact sunken costs have on decision making as part of a risk management framework.

There are no easy economic or physiological answers. Some people chose to continue the investment in the hope of breaking even or coming out a bit ahead. Some chose to cut their losses. Some, few who are really lucky and usually have other strategies and information at play even come out ahead after a period of loss.

The thing about risk management in relation to any economic theory is that the appropriate responses are to avoid the risk, accept the risk, control the risk, mitigate against the risk and/or contain the risk. The only unacceptable response is to ignore the risk.

I think you are absolutely right that your wife wouldn’t be OK with you walking out of the marriage. Of course she would be surprised and hurt – because you’ve tolerated the situation in silence long time.

Is that enough of a reason to ignore the sense of dissatisfaction you currently feel? I don’t know. In economic terms – it absolutely wouldn’t be.


V

Never make someone a priority, who makes you an option.