XXICognitive Bias

Sunk Cost Fallacy

Your bias is Sunk Cost Fallacy. Continuing a position because of past investment.

Why This Bias Happens

To abandon a costly path feels like self-accusation. So we pay again to avoid admitting the first loss.

Example 1

Seneca writes that wise people do not persist simply because they have begun. They choose the better road once it appears.

Example 2

Behavioral studies show escalating commitment to failing projects when decision-makers feel responsible for prior investments.

Further Reading

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