What is sunk cost effect? - Deepstash
What is sunk cost effect?

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, the effect is so strong that people are immune to any explanation, mathematical, financial, or otherwise.

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radu_atanasiu

I teach Thinking and Deciding in Business for multiple schools in Romania and abroad. On top of that, I am an angel investor, a trainer and I run marathons, often dressed as Mickey Mouse.

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