Thursday, January 23, 2014

A Little Meditating Helps You Make Better Business Decisions

HBR Blog Network / The Daily Stat

Research participants who had spent just 15 minutes in “mindfulness” meditation, focusing on their breathing, were 77% more likely than others to resist what’s known as the “sunk-cost bias,” the tendency to stick with a less-than-optimal strategy merely because a lot of money has been sunk into it, says a team led by Andrew C. Hafenbrack of Insead business school in France. In a fictional scenario, the participants had to decide whether to buy a highly efficient $10,000 machine shortly after spending $200,000 on equipment that was much less efficient (and couldn’t be sold). Meditation’s impact on the sunk-cost bias may have to do with its ability to improve mood and decrease people’s focus on the future and past, the researchers suggest.
SOURCE:  Debiasing the Mind Through Meditation: Mindfulness and the Sunk-Cost Bias

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