The Sunk Cost Fallacy: The Organizational Pitfall We All Need to Overcome
We all make bad decisions from time to time. But sometimes, we stick with these bad decisions for far too long, pouring more time, money, and effort into them, even when it’s clear they’re not working out. This tendency is called the sunk cost fallacy, and it’s a common problem that plagues many organizations. What is the Sunk Cost Fallacy? The sunk cost fallacy is a cognitive bias that leads us to make decisions based on past investments rather than present or future costs and benefits....