To help us understand quitting, we look at a couple of key economic concepts in this episode: sunk cost and opportunity cost. Sunk cost is about the past – it’s the time or money or sweat equity you’ve put into a job or relationship or a project, and which makes quitting hard. 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.
There is a large cast of characters in this episode, ranging from prostitutes and baseball players to former government officials and a couple of Amish women who left the fold. You’ll also hear Steve Levitt talk about his quitting strategies, and I describe my life as a serial quitter, having abandoned, in order: the rock band to which I had devoted my youth; Catholicism; and The New York Times.