Decision making · 4 minute read
Sunk Cost Fallacy
Past investment can keep us committed even when continuing no longer makes sense.
Try thisDecide using future costs and benefits—not yesterday’s investment.
In plain English
What is it?
Time, money, and effort already spent cannot be recovered, but they still influence the next choice.
In the real world
What does it look like?
A team keeps funding a weak project because it has already spent a year building it.
Make it useful
How do you think more clearly?
Decide using future costs and benefits—not yesterday’s investment.