title: Getting older isn't all that bad: better decisions and coping when facing "sunk costs".
abstract: Because people of all ages face decisions that affect their quality of life, decision-making competence is important across the life span. According to theories of rational decision making, one crucial decision skill involves the ability to discontinue failing commitments despite irrecoverable investments also referred to as "sunk costs." We find that older adults are better than younger adults at making decisions to discontinue such failing commitments especially when irrecoverable losses are large, as well as at coping with the associated irrecoverable losses. Our results are relevant to interventions that aim to promote better decision-making competence across the life span.
authors.affiliation: Centre for Decision Research, Leeds University Business Schoo.
authors.forename: Wändi
authors.initials: W
authors.lastname: Bruine de Bruin
authors.affiliation: Department of Psychology, West Virginia University.
authors.forename: JoNell
authors.initials: J
authors.lastname: Strough
authors.affiliation: RAND Corporation.
authors.forename: Andrew M
authors.initials: AM
authors.lastname: Parker
mesh_terms: D000223:Adaptation, Psychological; D000328:Adult; D000367:Age Factors; D000368:Aged; D000369:Aged, 80 and over; D000375:Aging / Q000523:psychology*; D003657:Decision Making; D005260:Female; D006801:Humans; D007449:Investments; D008297:Male; D008875:Middle Aged; D055815:Young Adult