5 ms·
It is somewhat rare that companies will recognize the fallacy of sunk costs ("We've already spent so much, we need to do this"). I think the world would be a mu
by engi_nerd 11y ago
It is somewhat rare that companies will recognize the fallacy of sunk costs ("We've already spent so much, we need to do this"). I think the world would be a much different place if we could somehow overcome this cognitive error.
- qnaal 11y agomakes for good examples that everyone can learn from
- minusSeven 11y agoeasier said than done.
- bmir-alum-007 11y agoI see this repeated all the time and tend to label it "the investment-bias fallacy" but it's also called commitment bias. [0] Go into any casino where people are trying to win back their lost money is one classic cliché. 0. https://en.wikipedia.org/wiki/Escalation_of_commitment https://en.wikipedia.org/wiki/Escalation_of_commitment
- engi_nerd 11y ago"Sunk cost fallacy" is what my college "Engineering methods" course called it, but we are talking about the same concept.