The Sunk Cost Fallacy
Why should you forgot the past !
Imagine you are watching a boring film. After half an hour you asked your friend let’s leave. He said, “ No way dude, we just 20 Dollar for it". You said, “ we don’t have any reason to stay". This is called sunk cost Fallacy - a thinking error.
We have already paid 20 Dollar whether we stay or not. So, the factor should not play a role in our decision.
The next day morning while eating I just found out a few more sweets. If I don’t have it all now, the rest will be wasted. And we will consume more sugar over the limit. That is also sunk cost Fallacy.
At relationship, we sometimes struggle with our girlfriend. The relationship goes toxic but we couldn’t breakup due to this factor. How can we just broke up after few years relationship!
So for this issue, sunk cost Fallacy costs more. Even though we don’t have any bright side of it, we are constantly loosing our time, money, happiness on it.
Investors are most frequent victim in it.Sometimes they guess this investment will go wrong but due to sunk cost, they thinks we just invested that much, how can we just throw it away now!
Even reading book or watching movie we do the same mistake.
If you think “ we just made this far". Then it is sunk cost Fallacy.
Although there can be good reasons for that. But we should think both side of coin very sharp eye. Be clear. If you want it or not . don’t just take decision on your past use.
Cheers.
