The sunk cost fallacy is the mindset of continuing with a decision just because of past investments, ... Commitment bias: Humans are creatures of habit and tend to stick with original plans.

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 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 ...

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 ...

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 ...

Every day, you make hundreds of decisions—some big, like choosing a career path, others as small as picking what to eat for ...

Overcome this bias to make better business decisions. ... The plain truth is that many people, from entrepreneurs to investors and even private individuals, fall prey to the sunk cost fallacy.

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 ...

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, ...

This article will explore how three cognitive biases, in particular, have contributed to this doom spiral: confirmation bias, status quo bias, and sunk cost fallacy. Confirmation Bias: Doubling ...