The Sunk Cost Fallacy: Why We Throw Good Money After Bad

Whether it’s continuing a failing business venture or staying in an unsatisfying relationship, the sunk costfallacy influences many of our life decisions. Understand this cognitive bias and learn when to cut yourlosses.

What You’ll Discover:

• The psychology behind this devastating decision-making trap
• Why our brains are evolutionarily wired to fall for this bias
• How sunk cost thinking sabotages business and personal success
• Powerful decision-making frameworks to break free from the trap
• When to walk away, even when it hurts

Stories That Illustrate These Principles:

• Concorde supersonic jet: British and French governments continued funding the commerciallyunviable aircraft for decades due to sunk costs
• Theranos scandal: Elizabeth Holmes and investors continued pouring money into failed blood-testing technology
• Movie industry: Studios releasing obviously bad films after spending millions, like “John Carter”($250M loss)
• Personal relationships: People staying in unhappy marriages because of years invested, ignoringfuture happiness
• College major switches: Students continuing degrees they hate because they’ve already spent twoyears studying
• Subscription services: Keeping unused gym memberships or streaming services because “I paid forthe year”