The sunk cost fallacy occurs when we use money, time, or effort we've already spent (and can't recover) as justification to keep investing in something that's clearly not working.

Definitions of Sunk cost fallacyThe sunk cost fallacy is our tendency to continue with something we’ve invested money, effort, or time into—even if the current costs outweigh the benefits. When we ...

American troops across the region – in Doha, Jordan, Syria and Iraq – form part of Washington’s commitment trap, and its sunk costs, too. They may .

That is exactly why CEOs don’t do it, unless cornered. The list of projects that fall prey to the sunk cost fallacy are legion. Dare I say bullet train. Or perhaps Ash Street.

Example of the Sunk Cost Trap Jennifer buys $1,000 worth of Company X’s stock in January. In December, its value has dropped to $100 even though the overall market and similar stocks have risen ...