Have you ever continued watching a terrible movie simply because you already bought the ticket? Or remained in a bad relationship because you don’t want to feel like all that time was wasted? That’s the sunk cost fallacy at work, it's the notion that we keep investing in something just because we’ve already committed time, money, or effort, even when it no longer makes sense.
Daniel Kahneman discusses how loss aversion, the reality that losing something is more painful than the pleasure of gaining the same thing, significantly contributes to this behavior. We dislike admitting we were wrong, so we reinforce our commitment. This bias isn’t limited to movies or relationships; it also influences major decisions like persisting in a failing job, a poor investment, or even holding onto beliefs in a psychic or paranormal claims long after evidence suggests otherwise. Grasping the sunk cost fallacy can aid us in recognizing when it’s wiser to cut our losses and move forward
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I’ve totally been there. I once forced myself to finish a book I really didn’t like just because I was already halfway through. By the end, I realized I could’ve spent that time on something I actually enjoyed.
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