The Sunk Cost Fallacy - Deepstash
Diverse And Inclusive Workplaces

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Strategies for promoting inclusivity

How to address unconscious bias

How to create a diverse and inclusive workplace

Diverse And Inclusive Workplaces

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The Sunk Cost Fallacy

The Sunk Cost Fallacy

“Sunk costs” are money, time, or effort we’ve already spent and can’t get back.

Cultivate a habit of admitting your mistakes. Ask yourself: If the past didn’t exist and you’re just starting out now, what would you do?”

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3.68K reads

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Anchoring Bias

Anchoring Bias

When we’re evaluating an option, we often fixate on the first piece of information we have about it.

Decide in advance what outcome you have in mind.

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3.27K reads

Attribution Bias

Attribution Bias

The “fundamental attribution error,” is when we excuse our own mistakes but blame other people for theirs.

Give other people the chance to explain themselves before judging their behavior.

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Decision-making errors

Most decision-making errors boil down to:

  • logical fallacies (over-generalizations, comparing apples and oranges, circular thinking)
  • limiting beliefs (underestimations of what's possible)
  • judgment biases (valuing certain factors above others)....

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5.48K reads

Confirmation Bias

Confirmation Bias

If you already have an opinion about something before you've even tried to figure it out, chances are you'll over-value information that confirms that opinion.

Think about what kinds of information you would expect to find to support alternative outcomes.

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A negative mind will never give you a positive mind.

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The sunk cost fallacy

The sunk cost fallacy

Humans are especially susceptible to the “sunk cost fallacy”—a psychological effect where we feel compelled to continue doing something just because we’ve already put time and effort into it.

But the reality is that no matter what you spend your time doing, you can never get that time ba...

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...

The Sunk Cost Fallacy In Business

When running a company, many entrepreneurs fail to quit, change direction or pivot their business model, unable to admit that what they were doing isn’t working, or that they were plain wrong in their decisions.

The Sunk Cost Fallacy is the primary reason for this gross error in ju...

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