The Sunk Cost Fallacy Sinkhole
And how not to fall in this campaign season.
As campaign season is upon us, let’s talk about a classic cognitive bias trap that we’ve all fallen into at some point: The Sunk Cost Fallacy.
The Sunk Cost Trap
Picture this: you’ve invested a not-insignificant amount of time, money, or effort into something, be it a project, a relationship, or even a sinking ship (metaphorically, of course), and when things start going south, you find yourself clinging on for dear life just because you’ve already put so much into it.
You wouldn’t want all that hard work, money, and effort to be wasted, right? Wrong.
That’s the Sunk Cost Fallacy.
It’s like that feeling when you’ve already waited in line for an hour for a mediocre movie, and even though you realize it’s a dud 15 minutes into the movie, you stick around because, well, you’ve invested all that time, right?
That’s where the fallacy lies. Instead of cutting your losses and walking away, you’re throwing good time after bad.
Smart people, successful companies, and prudent governing bodies fall into this trap all the time — everyone is guilty of it. But recognizing this sneaky little cognitive bias can be a game-changer. It’s about focusing on the future rather…