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#7 seems to have hints of sunk cost fallacy, but #1-6 really explain how this organically happens for people. They don't go into expecting the outcome to be #7,
by JMTQp8lwXL 7y ago
#7 seems to have hints of sunk cost fallacy, but #1-6 really explain how this organically happens for people. They don't go into expecting the outcome to be #7, which would explain the fallacies I was making. Thanks!
- munificent 7y agoI think people tend to over-correct when discovering the sunk cost fallacy. It is definitely a fallacy people fall for, pretty frequently. But there are also things that look like sunk cost fallacies that are actually trying to extract value from previous investments. In the case of YouTubers, if you already have thousands of followers, video gear, lighting, hard-earned performance skills, and video editing proficiency, then it is entirely rational to try to continue to leverage those investments for your future income. I've got two decades of experience in software engineering. It's not a sunk cost fallacy for me to continue looking for software engineering jobs, it's me trying to capitalize on that investment. The real hard part is figuring out when some past investment like that is winding down such that you're better off discarding your potential future earning from it order to spend that time building up a new investment. You don't wait until the copper mine is completely empty to shut it down. You close it when the copper you can extract is worth less than you could get from spending that time elsewhere. Making that calculation for our intangible skill investments is really difficult.