The Sunk Cost Fallacy: The Tendency to Continue Investing in a Decision Due to Past Resources
The Sunk Cost Fallacy: The Tendency to Continue Investing in a Decision Due to Past Resources
Do you find yourself investing more time, money, or effort into a decision because of the resources you've already committed, even if it no longer makes sense to do so? You're not alone. This phenomenon is known as the sunk cost fallacy, a cognitive bias that affects us all. In this video, we'll explore the psychology behind the sunk cost fallacy, how it relates to loss aversion, and why it's essential to ignore sunk costs to make more rational decisions.
Sunk cost fallacy, loss aversion, cognitive bias, irrational behavior, decision making, investing, resource allocation, psychology, economics, behavioral economics, rational thinking.
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