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.

 
To learn how to identify and control these biases and move toward the door at the right time, read “Learning to let go: Making better exit decisions” (2006 Number 2). [This premium article is guest-passed through August 28.]