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> much of what we call “sunk cost” looks like simple carelessness & thoughtlessness Politics make the sunk cost fallacy pervasive in business and government.
by crmd 3y ago
> much of what we call “sunk cost” looks like simple carelessness & thoughtlessness
Politics make the sunk cost fallacy pervasive in business and government.
If you’re in management in most companies, you get fired if a signature initiative of consequence fails.
So the actual calculus is to either declare defeat and essentially fire yourself today, or risk a bit more of the company’s capital (not your own!) to see out the x% chance that the venture succeeds.
- doytch 3y agoYeah, I think that’s almost kinda the thrust. That sunk cost is a fallacy only at an organizational scale and at the individual scale it’s merely strategy or thoughtlessness. From the article: > People commit sunk cost much more easily if someone else is paying, possibly in part because they are trying to still prove themselves right—an understandable and rational choice!