Choiceology with Katy Milkman When Sunk Costs Take Flight
78 snips
Apr 6, 2026 
Richard Thaler, Nobel-winning economist and behavioral economics pioneer, stops by to unpack why we cling to past costs. He discusses the Spruce Goose saga, why prepaid plans and wine experiments reveal odd money illusions, and how professionals mismanage losses. Short, vivid stories and a memorable rule make the sunk-cost problem surprisingly clear.
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Howard Hughes Obsession With The Spruce Goose
- Howard Hughes poured years of design and hands‑on micromanagement into the H‑4 Spruce Goose project.
- He supervised details like screw sizes and recruited carpenters to build the enormous wooden plane during WWII material shortages.
Identity And Sunk Costs Locked Hughes In
- Hughes kept investing personal funds and effort in the H‑4 despite obvious signs it was no longer needed.
- His identity, reputation, and huge sunk investments made it psychologically costly to abandon the project even when rational choice suggested walking away.
The Spruce Goose Flew For 26 Seconds
- Hughes completed the H‑4 and staged a Long Beach taxi test where the plane lifted off for 26 seconds and flew about a mile.
- The brief flight vindicated Hughes personally but came years too late; the military need had evaporated and the plane never flew again.
