No. 33 · Decisions · Military and War
Pyrrhic Victory
A win that costs too much can leave you worse off than losing.
In the Almanac
“Bunker Hill”, 1775 · “RBS and ABN AMRO”, 2007–2008
Both stories in full, three ways to use it and where it misleads.
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Questions
What is Pyrrhic Victory?
A Pyrrhic Victory is a win that drains the winner. The British took Bunker Hill in 1775 but lost nearly half their attackers, and RBS won the bidding war for ABN AMRO just before the financial crisis, then needed a huge government rescue.
How do you use Pyrrhic Victory?
Use it by counting the full cost before you fight: in arguments, ask what winning does to the relationship; in deals, set a walk-away point; and in big pushes at work, make sure you'll still be standing after the finish line.
When does Pyrrhic Victory matter?
Pyrrhic Victory is one of the 35 mental models for decisions, the situations where you ask: Which way should I go? Within that, it belongs to “Committing, and when not to”, alongside Burn the Boats, Circle of Competence and Devil’s Advocate Position.
What is an example of Pyrrhic Victory?
Two stories show it at work: Bunker Hill (1775) and RBS and ABN AMRO (2007–2008). Both are told in full in The Mental Models Daily Almanac, which has two stories for each of its 365 models.
Which mental models are related to Pyrrhic Victory?
Winner’s Curse, War of Attrition and Sunk Cost Fallacy. Pyrrhic Victory itself comes from military and war.