3 ms·
No, sunk cost is just a fallacy. If you've already put $90 into something with a 50% chance of returning $100 if you invest another $10, with all other things b
by pessimizer 3y ago
No, sunk cost is just a fallacy. If you've already put $90 into something with a 50% chance of returning $100 if you invest another $10, with all other things being equal, it's a bad idea to spend that $10 if there's a cheaper $9 option that also has a 50% chance or returning $100.
> For example, if you spent 5 minutes trying to loosen a tight bolt, it's possible that the bolt has been loosened somewhat and you could fully loosen it in a few more minutes, so giving up is suboptimal.
This is exactly the sunk cost fallacy, though. Wishful thinking: "it's possible that the bolt has been loosened somewhat"
If "it's possible," then it's not a sunk cost fallacy, it's the best option. The sunk cost fallacy is when you prefer a tight bolt that you've put a lot of effort into to a looser bolt that you haven't put any effort into.