For Sunk Cost Fallacy?
The Sunk Cost Fallacy Means That We Are Making Decisions That Are Irrational and Lead to Suboptimal Outcomes. We Are Focused on Our Past Investments Instead of...
The sunk cost fallacy means that we are making decisions that are irrational and lead to suboptimal outcomes. We are focused on our past investments instead of our present and future costs and benefits, meaning that we commit ourselves to decisions that are no longer in our best interests.
What is an example of sunk cost fallacy?
For example, individuals sometimes order too much food and then over-eat just to “get their money's worth”. Similarly, a person may have a $20 ticket to a concert and then drive for hours through a blizzard, just because she feels that she has to attend due to having made the initial investment.
How do I get sunk cost fallacy?
- Develop and remember your big picture. ...
- Develop creative tension. ...
- Keep track of your investments, be it time or money, and be ready to cut your losses when the numbers don't look good. ...
- Get the facts, not the hearsay. ...
- Let go of personal attachments.
James Sterling reports on renewable energy developments, climate policy, ecological conservation, and green tech innovations around the globe.
