sunk cost fallacy
SUNK KOST FAL-uh-see
sʌŋk kɒst ˈfæləsiListen
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Dictionary meaning
the irrational tendency to continue a failing course of action because of the time, money, or effort already invested in it, even when all rational analysis indicates that continuing will only deepen the loss; in standard economics, sunk costs — resources already spent and unrecoverable — should be irrelevant to forward-looking decisions; but in practice, the emotional weight of past investment makes it psychologically difficult to walk away; the sunk cost fallacy manifests in continuing to watch a dull film because of the ticket price, staying in failing businesses because of prior investment, and escalating military commitments because withdrawing feels like wasting the lives already lost
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