The Sunk Cost Fallacy: Stanford Scientists Reveal Why We Value Things More When They Cost Us More New research delves into the psychology of sunk costs, showing how dopamine release in the brain reinforces our tendency to overvalue things we’ve heavily invested in, leading to irrat...
Behavioral EconomicsBehavioral Economics combines principles from psychology and economics to understand how individuals make decisions in real-world contexts. It examines cognitive biases, heuristics, and social factors that influence decision-making, including the sunk cost fallacy. Behavioral economics offers...
DISCUSSING THE SUNK COST FALLACY: TOWARDS A HIERARCHICAL CONCEPT OF RATIONALITY IN MANAGERIAL DECISION-MAKINGRationalitymanagement decision-makingsunk costssunk costs fallacyAn assertion widespread in economics, psychology, and managementmaintains that giving weight to sunk costs is irrational. However, there...
More about the sunk cost fallacy onthis website. Find thelatest researchon the sunk cost fallacy. Watch videoson the sunk cost fallacy. References Arkes, H. R., & Blumer, C. (1985), The psychology of sunk costs.Organizational Behavior and Human Decision Processes, 35,124-140. ...
The ‘sunk-cost fallacy’ BARRY SCHWARTZ is a professor of psychology at Swarthmore College and the author of "The Paradox of Choice: Why More Is Less." YOU’VE PAID $10 to get into the movie and it just plain stinks. The plot is ridiculous, the acting is terrible, the violence is ...
The psychology behind the sunk cost fallacy Researchers in behavioral economics have identified at least five psychological factors that feed into the sunk cost effect: Loss aversion Loss aversionis the tendency to avoid losses because the idea of losing something is more psychologically powerful than ...
1) Sunk Cost Fallacy 沉没成本误区 1. We find that,compared to other countries or areas,the psychology of the lottery plays in China Mainland are more irrational,and display mainly in Gambler\'s Fallacy andSunk Cost Fallacy. 结果发现,相对于中国台湾在内的其它国家或地区,当前我国广大彩票购买者普...
The sunk cost fallacy is a common cognitive bias that drives you to follow through on an idea or course of action because of previously invested resources. These resources may include a large amount of time, money, or energy spent on a certain task. The psychology of the sunk cost effect ...
What is the sunk cost fallacy psychology? “The sunk cost effect isthe general tendency for people to continue an endeavor, or continue consuming or pursuing an option, if they've invested time or money or some resource in it,” says Christopher Olivola, an assistant professor of marketing ...
[on the sunk cost fallacy] when he discussed the sunk cost fallacy as a separate but similar situation to those survival scenarios he’d already described [which were also cases of sunk costs] – i.e. it sounded like Tougias believes the sunk cost fallacy only applies to financial costs, ...