Topics
Sunk Cost Fallacy
The sunk cost fallacy is the tendency to continue investing time, money, or other resources in a particular course of action because of the resources that have already been invested, even if it is no longer in one's best interests to do so. This fallacy can lead people to make irrational decisions because they are influenced by sunk costs, rather than by the potential returns or benefits of the current course of action.
The sunk cost fallacy is a common bias that can affect decision-making in a variety of contexts, including business, personal finance, and interpersonal relationships. It can lead people to pursue goals that are no longer attainable or desirable, or to continue engaging in activities that are not productive or enjoyable
See also
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3.4.7 Contestable Markets (Edexcel A-Level Economics Teaching PowerPoint)
Teaching PowerPoints
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In Economics - what is thinking at the margin?
2nd August 2023
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Avoiding the sunk cost fallacy - Alphabet abandons Loon
22nd January 2021
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Barriers to Exit
Topic Videos