11. Sunk Cost Fallacy: - Deepstash
11. Sunk Cost Fallacy:

11. Sunk Cost Fallacy:

People continue to invest in a decision or project based on the resources already committed, even when it's clear that further investment won't lead to better outcomes. For instance, you might keep pouring money into a failing business because you've already invested a significant amount.

40

261 reads

CURATED FROM

IDEAS CURATED BY

alexbene

Being an ambivert person, I am too much fond of reading, and always eager to learn.

These cognitive biases and mind traps influence decision-making, perception, and behavior in various aspects of our lives. Recognizing them can help us make more rational and informed choices.

Similar ideas to 11. Sunk Cost Fallacy:

The Sunk Cost Fallacy

We want to finish what we've started because of previously invested resources, even if it is better to quit and use our limited resources elsewhere for better returns.

What you can do about it:

  • Every decision has two costs...

Common Explanations for Status Quo Bias

These explanations are all irrational for preferring the status quo:

  • Loss Aversion: When we make decisions, we weigh the potential for loss more heavily than the potential for gain.
  • Sunk Costs: We continue to invest resources like time, mone...

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates