Makingrationaldecisions by ignoring the investment already made is the best way to avoid the sunkcostfallacy. This is a simple and effective solution on paper, but even the most logical people can be influenced by the fallacy when encountering it in real-world scenarios. Research has also shown...
While most of the evidence for the sunk cost fallacy comes fromindividual decisions, it may also influence the decisions of groups. In fact, it is sometimes referred to as theConcord fallacy, because the French and British governments continued funding the doomed supersonic airliner long after it...
What Is the Sunk Cost Fallacy? What Is the Sunk Cost Dilemma? Sunk costs are bound to happen, and while you should know how to avoid them when possible, it's equally if not more important to understand how to prepare for them and possibly even budget around them. What Is a Sunk Cos...
While most of the evidence for the sunk cost fallacy comes from individual decisions, it may also influence the decisions of groups. In fact, it is sometimes referred to as the Concord fallacy, because the French and British governments continued funding the doomed supersonic airliner long after...
The sunk cost fallacy is a psychological barrier that ties people to unsuccessful endeavors simply because they've committed resources to it. 沉没成本谬误是一种心理障碍,它将人们与不成功的努力联系起来,仅仅是因为他们已经投入了资源。 Examples of sunk costs include salaries, insurance, rent, nonrefundab...
One of the most harmful examples of the sunk cost fallacy is continuing to invest money into something that is a bad investment because you don’t want to lose the money you already put into it. This could involve multiple kinds of investments. For example, you could continueinvesting in pe...
The sunk cost fallacy is a psychological barrier that ties people to unsuccessful endeavors simply because they've committed resources to it. 沉没成本谬误是一种心理障碍,它将人们与不成功的努力联系起来,仅仅是因为他们已经投入了资源。 Examples of sunk costs include salaries, insurance, rent, nonrefundab...
This is a pretty common misconception about sunk costs. What is the sunk cost fallacy? The sunk cost fallacy happens when individuals or businesses make decisions on the mistaken belief that a sunk cost might lead to a return at some point. In other words, they mistake a sunk cost for an...
The Sunk Cost Fallacy The sunk cost fallacy is the improper mindset a company or individual may have when working through a decision. This fallacy is based on the premise that committing to the current plan is justified because resources have already been committed. This mistake may result in ...
an evaluation of whether further investment would just be throwing good money after bad. The purely rational economic person would consider only the variable costs, but most people irrationally factor the sunk costs into our decisions. The Sunk Cost Dilemma is also called the Concorde Fallacy. ...