When to exit a failing venture

							Standard economic theory treats human beings as rational, calculating machines, but behavioral economics holds that the machine often breaks down. Businesspeople, no less than others, are subject to cognitive biases that can undermine their objectivity—particularly in emotionally traumatic and potentially career-destroying decisions to exit foundering businesses or cancel struggling projects.
							See “Learning to let go: Making better exit decisions” (2006 No 2).

Also of Interest
Distortions and deceptions in strategic decisions 2006 Number 1 Companies are vulnerable to misconceptions, cognitive biases, and plain old lies. But not hopelessly vulnerable. Beating the odds in market entry 2005 Number 4 Decisions to enter markets, like decisions to leave them, often fall victim to cognitive biases. (Premium)	Hidden flaws in strategy 2003 Number 2 Can insights from behavioral economics explain why good executives back bad strategies? (Premium) The psychology of change management 2003 Special Edition: Organization Companies can transform the attitudes and behavior of their employees by applying psychological breakthroughs that explain why people think and act as they do.