⚡ Industry X-Ray

Decision-Making

What is the sunk cost fallacy?

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The Bias: You hate the movie but stay because you paid. What's the bias?

Sunk cost fallacy. Money already spent is gone either way, yet it pulls us to keep going. Source: Wikipedia – Sunk cost

Where It Shows Up: Famous real-world example?

The Concorde, kept going partly because of what was already invested. It's sometimes called the "Concorde fallacy". Source: Wikipedia – Sunk cost

The Fix: Fix?

Decide as if you were starting fresh today. Only future costs and benefits should count. Source: Wikipedia – Sunk cost

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