"We must do whatever it takes to justify what we've already done" - Stephen Colbert The sunk cost fallacy is one of my favorite concepts. I first encountered it in business school. In the business word, "sunk costs" are any past costs that cannot be regained. The sunk costs fallacy describes an occurrence whereby managers will overvalue a project based on the sunk costs invested in it, rather than the prospective future gains.
Rational Relationships: The Sunk Cost Fallacy
Rational Relationships: The Sunk Cost Fallacy
Rational Relationships: The Sunk Cost Fallacy
"We must do whatever it takes to justify what we've already done" - Stephen Colbert The sunk cost fallacy is one of my favorite concepts. I first encountered it in business school. In the business word, "sunk costs" are any past costs that cannot be regained. The sunk costs fallacy describes an occurrence whereby managers will overvalue a project based on the sunk costs invested in it, rather than the prospective future gains.