Why does paying a deposit make it harder to walk away?
Paying a deposit makes it harder to walk away because people who have already paid tend to keep going to avoid looking wasteful [S19]. Losses also weigh more than equal gains, so walking away feels like a loss [S32]. Both are tendencies seen in studies, not proof of what happens in a given room.
What the research found
Arkes and Blumer's 1985 field study in Organizational Behavior and Human Decision Processes found that theatre-season ticket buyers who paid more attended more plays [S19]. The finding is the classic one: money already spent keeps pulling on later choices.
Kahneman and Tversky's 1979 prospect theory describes losses as weighing more than equivalent gains [S32]. Together, the two ideas suggest why a deposit can turn "should I do this?" into "how do I avoid wasting what I paid?"
A related technique, the low-ball, secures a commitment first and discloses costs later [S20]. A deposit taken immediately sets that up.
How the room uses it
"Just put down a deposit to lock in your spot." Or full payment by card at the table. The amount is rarely the point. The point is that once money has moved, leaving feels like losing it.
The playbook pages that show the move in action:
- Why they want a deposit today
- The payment plan that is a full contract
- Why you are steered into new credit
What the research does not show
The caveats are part of the finding. A call-out that overclaims hands its critics an easy rebuttal.
- The 1985 finding is a single field study of theatre tickets. The sources reviewed do not report how it replicated, and we do not claim it did.
- The sources reviewed give no effect size for deposits at coaching events.
- That a deposit makes walking away feel like a loss is an inference from the studies, not a measured result of any live sale.
- These findings say nothing about what you can legally get back. Refund and cancellation rights depend on the contract, where you signed and how you paid. For your situation, talk to a lawyer or legal aid.
Your move
Frequently asked questions about sunk cost
Short answers on what the sunk cost research does and does not say.
Does paying a deposit mean I must go on?
No. A deposit pulls on your thinking, but it does not decide for you. What you can cancel or get back depends on your contract and the law that applies, so read your contract and ask a lawyer or legal aid. Read the cancellation pages.
Is the sunk cost effect a flaw in me?
No. It is a common tendency in people, seen in a classic field study [S19]. It is useful in daily life and a vulnerability when a setting is built around it.
Does the theatre study cover coaching deposits?
No. It studied season ticket buyers. It supports the mechanism and says nothing about coaching, events or deposits.
What to do next
Take the rule with you into the room. Read the checklist before you go. See the other principles in the science hub. If something happened to you in a room, tell us.
Who writes this site
Coached Into Debt is written by an organization, not a named author. More about who we are.
Sources
- S19 Arkes, H. R. and Blumer, C. (1985), The psychology of sunk cost · Organizational Behavior and Human Decision Processes 35(1), 124-140 · doi.org · accessed 2026-10-27
- S20 Cialdini, R. B., Cacioppo, J. T., Bassett, R. and Miller, J. A. (1978), Low-ball procedure for producing compliance: commitment then cost · Journal of Personality and Social Psychology 36(5), 463-476 · doi.org · accessed 2026-10-27
- S32 Kahneman, D. and Tversky, A. (1979), Prospect theory: an analysis of decision under risk · Econometrica 47(2), 263-291 · doi.org · accessed 2026-10-27