Meditating can ease stress, insomnia, and depression and may even help ward off disease. Now there’s evidence it can produce better business decisions.
A new study suggests meditating can help business people change course when initial plans don’t work out. People often stick with decisions because they don’t want to feel wasteful or admit that their initial investment was a loss, says Andrew Hafenbrack, a doctoral student at INSEAD in Singapore and the study’s lead author. Behavioral scientists call this “sunk-cost bias”—also known as throwing good money after bad.
Participants in the study were asked to make decisions in business-related scenarios. In one, participants assumed the responsibilities of a company executive who has spent $9 million of a $10 million development budget on a new product, only to discover that a competitor has developed a similar product that performs better and costs less.
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