The sunk costs phenomenon

The pitfalls of persistence

“I hated the movie but decided to suffer through it because I had paid for the ticket…in 3D!”“The store was overpriced but I bought the dress because I drove all the way out there.” “His business isn’t doing well but he’s sticking with it because he’s invested so much time and money in it already! Sound familiar? How many times have you persisted at a task that you know deep down is an exercise in futility? In theory, decisions should be made based on the magnitude of future benefits for the decision-maker. ….[READ]