Madeline Grant writes for BBC Capital
“A gambler might call it chasing your losses. The British saying – ‘don’t throw good money after bad’ – captures a similar sentiment. Economists call it the sunk cost fallacy, and it’s ubiquitous.
“We all do it. Ever gone to the cinema and stayed to the end of a film you actually loathed 10 minutes in – or watched yet another season of what was once your favourite TV show? This is the logic that says ‘I’ve sunk a lot of money into my old car. I can’t just scrap it now. I really should replace that faulty gearbox’.”
Read the full article here.