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Sunkcost fallacy clouds rational decision-making from "summary" of Thinking, Fast and Slow by Daniel Kahneman
The sunk cost fallacy is a common cognitive bias that can have a significant impact on decision-making. This fallacy occurs when individuals continue to invest time, money, or resources into a project or decision simply because they have already invested in it. In other words, they make decisions based on past costs rather than on the future benefits or potential losses. This fallacy can cloud rational decision-making by causing individuals to disregard relevant information about the current situation and focus instead on what they have already invested. This can lead to a reluctance to change course, even when it is clear that doing so would be the most beneficial option. As a result, individuals may end up wasting additional resources on a project that is unlikely to s...
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