The sunk cost fallacy is the tendency to invest more in something despite it being non-recoverable. This behavior hinders decision-making based on future benefits rather than past investments.
The sunk cost fallacy refers to the tendency to invest more in something once a significant nonrecoverable investment has been made, even if further investment is not justified. This behavior occurs when individuals continue to put resources into a project or endeavor, despite evidence indicating it is no longer beneficial or viable.
For example, someone might persist in running a failing business because of the emotional attachment and past investments, rather than acknowledging the loss and moving on. Overcoming the sunk cost fallacy involves making decisions based on future prospects and benefits rather than past investments that cannot be recouped.
It is crucial for individuals and organizations to understand this fallacy and avoid making decisions influenced by past costs that should not impact future choices.
https://brainly.com/question/36535676
