2min chapter

People I (Mostly) Admire cover image

37. Sendhil Mullainathan Thinks Messing Around Is the Best Use of Your Time

People I (Mostly) Admire

CHAPTER

The Sunk Cost Fallacy

The key is that unlike every other auction in the world both the high bidder and the second place bidder both have to pay they pay whatever their bid was exactly. Once you cross that boundary there is no stopping this freight trade it's especially awesome doing classes when you have these sort of more broish because they just won't let go. The idea of throwing good money after bad has real personal resonance like people will remember this experience  that lets them understand sunk cost fallacy more than if I just talked it through don't throw good money into bad etc.

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