![]() It was originally an economic term referring to the literal costs incurred in running a business, and the error in reasoning when applying sunk costs to future decision making, but it applies to all kinds of choices, from collective to individual ones, from the life changing to the mundane. I say human tendency because this kind of decision-making flies in the face of rational thinking-a robot would never. This is the sunk cost fallacy the human tendency to continue investing resources in a less desirable alternative, simply because we’ve already invested some significant, irretrievable cost. ![]() Regardless what happens now, you can’t get them back, so you really should cut your losses and focus on future outcomes instead-how you’d most like to spend this precious afternoon for example-but you’re too blinded by the belief that by investing even more in this endeavor, you can somehow recoup what you’ve already lost. You’re now twelve pounds and half an hour down, you’re not enjoying yourself, and the only thing keeping you from turning this film off and finding one you’d like more is the time and money you’ve already invested. So you spend yet another ten minutes trying and failing to like it. You decide to give it another ten minutes maybe it will get better. It was expensive-£11.99-but you’ve heard only good things. You’re nestled into one corner of the sofa with a blanket and a big mug of hot chocolate, and you’ve just rented a three-hour long movie to see you through till dinnertime. ![]() There’s nowhere you need to go, and nothing you need to do but relax. It’s a grey, rainy Sunday afternoon, the first day you’ve had to yourself in weeks.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |