What category does Sunk Cost Fallacy belong to?

Sunk Cost Fallacy belongs to the "Cognitive Biases" category in personal knowledge management and productivity.

What are the key topics related to Sunk Cost Fallacy?

Key topics related to Sunk Cost Fallacy include: cognition, cognitive-biases, decision-making, economics, psychology, rationality.

Sunk Cost Fallacy

Q: What are alternative names for Sunk Cost Fallacy?

Sunk Cost Fallacy is also known as: Concorde fallacy, Escalation of commitment, Sunk cost bias, Sunk cost fallacy.

Continuing investments due to past costs that cannot be recovered.

Also known as: Concorde fallacy, Escalation of commitment, Sunk cost bias, Sunk cost fallacy

Category: Cognitive Biases

Tags: cognition, cognitive-biases, decision-making, economics, psychology, rationality

Explanation

The Sunk Cost Fallacy is the tendency to continue an endeavor because of previously invested resources (time, money, effort) that cannot be recovered, rather than evaluating future costs and benefits. 'I've already put so much into this' becomes justification for continuing even when stopping is rational. In PKM, this might manifest as reluctance to abandon an elaborate system that isn't working or clinging to notes you'll never use just because you spent time creating them.

Related Concepts

Critical Thinking
Loss Aversion
No Free Lunch
Opportunity Cost
Small and Riskless Bets

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