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ConceptSunk Cost Fallacy

Sunk Cost Fallacy

A concept in behavioral economics whereby people tend to continue committing resources because of costs already invested that cannot be recovered, even when further investment is not rational.

Timeline (last 90 days)

Sep 17

The sunk cost fallacy refers to people continuing to maintain a decision because of resources already invested, even when that decision is no longer rational at the present moment.

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Sep 17

The sunk cost fallacy is a classic concept in behavioral economics describing people's tendency to continue holding assets because of money or time already invested, even when rational analysis suggests that letting go is more cost-effective

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