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.
See also
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Mastering Sunk Costs - A Level and IB Economics
Topic Videos
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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