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The sunk cost fallacy is that you should continue spending money on something you've already spent money on. Make a bad expensive investment but give it up and
by suprjami 3y ago
The sunk cost fallacy is that you should continue spending money on something you've already spent money on.
Make a bad expensive investment but give it up and move on? That's fine.
Make a bad expensive investment then keep pouring money into it because you've already spent so much and can't throw away all this money now? That's the sunk cost fallacy.
- itronitron 3y agoNot just money. Any resource, time, or mental effort applied to use something because of it's initial expense when a better alternative exists.
- rightbyte 3y agoThen there is the sunk cost fallacy fallacy. Where you throw away investments since making another investment would have been better in hindsight.