The Sunk Cost Fallacy

The sunk cost fallacy is the tendency to continue investing in a decision based on what has already been spent, rather than on future benefits. For example, if you've bought a non-refundable ticket to a concert but feel unwell, you might still go because you don’t want to waste the ticket cost, even though it may not be enjoyable. This fallacy can lead to poor decision-making, as it prioritizes past investments over a rational evaluation of present circumstances and potential outcomes. Recognizing this fallacy helps in making more objective choices.