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035 - Inbetweenisode - The Sunk Cost Fallacy

You Are Not So Smart

Sunk Costs Are Payments or Investments That Can Never Be Recovered

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Sunk costs are payments or investments that can never be recovered. An android with a fully functioning logic brain, full of circuits of pure mathematical reasoning would never make a decision that took sunk costs into account. But you would because you're an emotional human being, and your aversion to loss often leads you right into things like this. A confirmed loss lingers and grows in your mind. It becomes larger in your inner history than it was when you first felt it.

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