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Psychology

The Sunk Cost Fallacy: Why We Persist with Losses

Quick fact

The term 'sunk cost' comes from economics, but the fallacy is so strong that people will even continue eating a meal they dislike just because they paid for it, ignoring that the money is gone regardless.

Why this is interesting

You’ve already paid for the movie ticket, but the film is terrible. Do you stay to get your money’s worth? If you say yes, you’re falling for one of the most common traps in human thinking.