The sunk cost fallacy: How to make better decisions? - Deepstash

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The sunk cost fallacy: How to make better decisions?

thinkinginbusiness.com

What is sunk cost effect?

To create a product or a service that is no longer needed, but you keep spending money, time, and effort on other features, hoping that maybe you can rescue it? This thing is known as “throwing good money after bad” and economists call it the “sunk cost effect”.

Sometimes, ...

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How to counter sunk-cost?

Think that you haven’t invested anything in that project so far, that someone gave it to you. Would you continue it? No? Then close it.

Don’t seek the advice of someone who was involved in the initial decision. They are as biased as you are. Ask a new person.

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