The sunk cost fallacy can also emerge when it comes to hanging onto purchases for longer than they best serve you. Let's say you took out a car loan for $40,000, ...

The sunk cost fallacy often muddies this inflection point—a psychological trap that tempts owners to chase poor investments or decisions, sometimes at the expense of more promising opportunities.

Some traders fall into the sunk cost fallacy by engaging in revenge trading. Traders in this state of mind may allocate an additional $200 into a trading strategy after losing $100.

In the field of economics, the sunk cost fallacy — also called the sunk cost effect — is notorious. It occurs whenever we double down on poor financial decisions based on past investments that can't ...

Sunk costs can affect high-stakes decisions. While the examples above may seem relatively trivial, they show how common the sunk cost fallacy is. And it can affect decisions with much higher stakes in ...

The term sunk cost fallacy was coined in 1980 by Richard Thaler, who received a Nobel Prize in 2017 for his pioneering work in behavioral economics.

However, he refuses to upgrade because he perceives a loss of $200,000 relative to the original price he paid of $1 million. Bob is committing the sunk cost fallacy by letting the original price ...

High-speed rail’s ‘sunk-cost fallacy’ — spending good money on what is not working | Opinion By Andrew Fiala Special to The Fresno Bee. January 27, 2024 5:30 AM.

The sunk cost fallacy can also emerge when it comes to hanging onto purchases for longer than they best serve you. Let's say ...

Everyone makes mistakes or suffers from bad luck from time to time. But too often, people dig their heels when the tide is shifting against them, rather than getting back on course — especially ...