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The bygones principle does not always accord with real-world behavior. Sunk costs often influence people's decisions, [7] [14] with people believing that investments (i.e., sunk costs) justify further expenditures. [16] People demonstrate "a greater tendency to continue an endeavor once an investment in money, effort, or time has been made".
Confirmation bias can also lead to escalation of commitment as individuals are then less likely to recognize the negative results of their decisions. [7] On the other hand, if the results are recognized, they can be blamed on unforeseeable events occurring during the course of the project. The effect of sunk costs is often seen escalating ...
But in real life, leaving an unsatisfactory marriage or a longtime partner is a real feat (without a kick-ass soundtrack to bolster you). This could be because of the sunk-cost fallacy. This could ...
The IKEA effect is thought to contribute to the sunk costs effect, which occurs when managers continue to devote resources to sometimes failing projects they have invested their labor in. The effect is also related to the " not invented here " (or "NIH", or even "NIH syndrome"), where managers disregard good ideas developed elsewhere, in favor ...
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 ...
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For example, producing a quote based on a manager's preferences, or, negotiating a house purchase price from the starting amount suggested by a real estate agent rather than an objective assessment of value. Gambler's fallacy (aka sunk cost bias), the failure to reset one's expectations based on one's current situation. For example, refusing to ...
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