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Economics

The Role of Sunk Costs in Business Decisions

Quick fact

The Concorde fallacy, named after the British-French supersonic jet, refers to continuing a failing project because huge amounts have already been spent, even when it's clear the project will never be profitable.

Why this is interesting

Have you ever finished a meal you didn't want just because you paid for it? That's the same mental trap that can lead businesses to pour good money after bad.