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Apr 7, 2023 · The sunk cost fallacy affects us most when we feel responsible for a decision and the sunk costs that accompany it. This creates an emotional bias causing us to cling to the project, decision, or course of action for which we feel personally responsible.
Feb 7, 2023 · Sunk cost fallacy is a cognitive bias that can lead to irrational decision-making. Learn more about sunk cost fallacy and how it can show up in your life.
In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken.
The sunk cost fallacy means that we are making irrational decisions because we are factoring in influences other than the current alternatives. The fallacy affects many different areas of our lives, leading to suboptimal outcomes.
Jul 15, 2021 · Summary. Many managers are susceptible to the famous sunk cost effect, whereby they persist investing in a money-losing project even when it makes sense to invest the new money in alternative...
Oct 28, 2023 · The sunk cost fallacy, sometimes called the “Concorde fallacy”, is the inclination to follow through on commitments or events based on prior investments, be they financial, time, or any other resource.
Aug 25, 2022 · The sunk cost fallacy is a logical fallacy that entails sticking with a losing or failed venture because you’ve already invested a significant amount of time, money, or other resources that you can’t get back.
Apr 5, 2024 · This article helps us understand the nature of the sunk cost fallacy and how we can help ourselves and our clients quit a lost cause.
Jun 2, 2024 · The sunk cost fallacy is a psychological barrier that ties people to unsuccessful endeavors simply because they've committed resources to it. Examples of sunk...
Nov 27, 2023 · Economists and social scientists argue that such behaviour can happen due to the “sunk cost fallacy” – an inability to ignore costs that have already been spent and can’t be recovered.
