Sunk Cost Fallacy

This is phenomenon whereby a person is reluctant to abandon a strategy or course of action because they have invested heavily in it, even when it is clear that abandonment would be more beneficial.

Wow this is basically Attachment.

In for a penny, in for a pound!

Some examples that apply

  • “Oh, I stopped going to the gym, i lost all my gains, there’s no point in going back now”
  • “We’ve already been together for so long, only choice is to stick”
  • “I’ve already been lazy for the past 4 hours, my day is already ruined, so it’s ok to keep being lazy”

Personal Thoughts

I think a lot of decisions in large companies are made simply because of Sunk Cost Fallacy. “Oh, we’ve already built all of this infrastructure, so let’s use it and keep expanding it”, when really it is potentially a waste of time