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> When you just entered a 10 or 15 year lease right before Covid hit, you're now stuck with paying 7 years for an office you're not even using Is that not a su
by cies 3y ago
> When you just entered a 10 or 15 year lease right before Covid hit, you're now stuck with paying 7 years for an office you're not even using
Is that not a sunk cost? From here:
https://en.wikipedia.org/wiki/Sunk_cost https://en.wikipedia.org/wiki/Sunk_cost
I got:
The bygones principle does not always accord with real-world behavior. Sunk costs often influence people's decisions, with people believing that investments (i.e., sunk costs) justify further expenditures. People demonstrate "a greater tendency to continue an endeavor once an investment in money, effort, or time has been made". This is the sunk cost fallacy, and such behavior may be described as "throwing good money after bad", while refusing to succumb to what may be described as "cutting one's losses".
- PixyMisa 3y agoYes, it's absolutely a sunk cost. Which doesn't mean some companies won't fall into the fallacy, but it's not likely to be the primary reason for RTO.
- plagiarist 3y agoIf you imagine talented employees leaving as a cost (a pretty obvious consequence in the current market) it fits.