Concorde Fallacy
The Concorde Fallacy, also known as sunk cost fallacy, occurs when people continue investing in a project or decision based on the resources they've already committed, rather than evaluating future benefits. Named after the supersonic Concorde jet, which was maintained despite financial losses, it highlights how past investments can cloud judgment. Instead of cutting losses when it's no longer viable, individuals or organizations stubbornly persist, leading to even greater losses. In essence, it emphasizes the importance of making decisions based on current and future value rather than being tethered to past expenditures.
Additional Insights
-
The Concorde fallacy, also known as the sunk cost fallacy, occurs when individuals continue a project or decision based on the resources they have already invested—such as time or money—rather than evaluating the current and future value. It takes its name from the Concorde supersonic airplane, which, despite being unprofitable, continued to receive funding due to previous investments. Essentially, it highlights the irrational tendency to stick with a failing endeavor instead of cutting losses and making more rational, future-oriented choices. Recognizing this fallacy can lead to better decision-making.