Sunk Cost Fallacy And Why You Should Quit

In this video, we take a look at the sunk cost fallacy and how it influences our decisions. We also briefly take a look at how loss aversion relates to sunk costs in a few examples. The sunk cost fallacy is most commonly discussed in psychology, economics, and consumer behavior research.

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[Merrick.Morley]

I thank you for this short video and the message you conveyed. However, I don't think you capture - or even acknowledge - that daily decisions are a complex process that take into consideration more than economic or temporal aspects. Someone who is significantly sick may travel to Italy because they have a wedding that they otherwise would miss. They could also be locked into annual leave from work and wouldn't be able to reschedule. Reducing the situation, even though you have likely done so to highlight the characteristics of the fallacy, is dangerous

[ShankaDaWanka]

I do not consider your first example to be a sunk cost. You can enjoy a vacation while sick. A cost is sunk when you have no hope for a return on your investment. All of the others, however, make sense.

[anthonytorres-cruz]

I can't think of a sunk cost fallacy in my life at the moment, but I'm sure there probably is one.