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The sunk cost fallacy has also been called the "Concorde fallacy": the British and French governments took their past expenses on the costly supersonic jet as a rationale for continuing the project, as opposed to "cutting their losses". There is also evidence of government representatives failing to ignore sunk costs. [21]
Economists and behavioral scientists use a related term, sunk-cost fallacy, to describe the justification of increased investment of money or effort in a decision, based on the cumulative prior investment ("sunk cost") despite new evidence suggesting that the future cost of continuing the behavior outweighs the expected benefit.
“The sunk-cost fallacy refers to the tendency humans have to continue investing in a failing endeavor even when the costs and commitment spent outweigh the benefits,” explains Sarah Kelleher ...
Escalation of commitment, irrational escalation, or sunk cost fallacy, where people justify increased investment in a decision, based on the cumulative prior investment, despite new evidence suggesting that the decision was probably wrong. G. I. Joe fallacy, the tendency to think that knowing about cognitive bias is enough to overcome it. [65]
This is a symptom of a sunk-cost fallacy — a cognitive bias that occurs when decisionmakers persist in committing resources to a cause despite clear suboptimal outcomes. When they fall into this ...
The sunk-cost problem helps explain why it was so hard to end that war. It is worth considering this problem as we reflect on current wars. The sunk-cost fallacy applies in our thinking about the ...
The ninth chapter explains the upside of quitting and three reasons why people have so much difficulty quitting. Firstly, quitting is frowned upon in society. Secondly, it is often difficult to justify abandoning a project after putting so much time, money, and effort used in an effort to achieve success, also known as the "sunk cost fallacy."
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