There is nothing so useless as doing efficiently that which should not be done at all.” —Peter Drucker, “The Effective ...

A sunk cost fallacy then occurs if you lean into the sunk cost by putting more resources toward it, even though that doesn't recoup what's already lost. So if you keep watching that TV show and ...

The sunk cost fallacy often muddies this inflection point—a psychological trap that tempts owners to chase poor investments or decisions, sometimes at the expense of more promising opportunities.

The sunk cost fallacy addresses the tendency of people to continue on a suboptimal path because they have committed a lot of time or resources to it already. Investors, for example, may double ...

In the field of economics, the sunk cost fallacy — also called the sunk cost effect — is notorious. It occurs whenever we double down on poor financial decisions based on past investments that can't ...

Sunk costs can affect high-stakes decisions While the examples above may seem relatively trivial, they show how common the sunk cost fallacy is.

The sunk cost fallacy is when you throw resources into a losing venture because you've already spent time or money.

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, ...

The sunk-cost fallacy shows up when people make the following kind of argument. “Since we’ve already got those useless bridges, we must continue. Otherwise, they will remain useless.” ...

A major way that the sunk cost fallacy hurts finances is by causing investors to stay committed to a misguided investment for too long or even allocate more to chase losses.

Bob is committing the sunk cost fallacy by letting the original price influence his decision making – only the house’s current and projected price should matter.