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 ...

The sunk cost fallacy often muddies this inflection point—a psychological trap ... future-focused decisions that benefit your business in the long run when you are aware of this bias and work to ...

In science, it is customary for researchers to disclose any potential bias, as part of the process of publishing work. While this is often considered in the realm of financial biases, I have ...

That’s the sunk cost fallacy—the tendency to continue with something simply because we’ve already invested time, money, or effort. Why it matters: This bias keeps people in unfulfilling jobs ...

The sunk cost fallacy is closely linked with the behavioral finance concept of "commitment bias," in which an investor will continue to pursue a course of action based on past decisions despite ...

What is sunk cost fallacy in relationships? A sunk cost fallacy is a mistaken belief that costs cannot be recovered. The sunk cost fallacy refers to our proclivity to factor in the value of past ...

Coined in 1980 by economist Richard Thaler, the sunk-cost fallacy describes a cognitive bias that leads people to double down on failed strategies in which they have invested time, ...

While virtually any cognitive bias or other psychological pitfall can hurt trading, two of the most common are confirmation bias and the sunk cost fallacy. Confirmation bias is when you give more ...