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It is somewhat rare that companies will recognize the fallacy of sunk costs ("We've already spent so much, we need to do this"). I think the world would be a much different place if we could somehow overcome this cognitive error.


I see this repeated all the time and tend to label it "the investment-bias fallacy" but it's also called commitment bias. [0] Go into any casino where people are trying to win back their lost money is one classic cliché.

0. https://en.wikipedia.org/wiki/Escalation_of_commitment


"Sunk cost fallacy" is what my college "Engineering methods" course called it, but we are talking about the same concept.


makes for good examples that everyone can learn from


easier said than done.




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