Cognitive Biases
  • Memory
  • Belief
  • Money

Sunk Cost Fallacy (aka Escalation of Commitment)

We invest more in things that have already cost us something rather than altering our investments, even when we face negative outcomes.

Example“In for a penny, in for a pound!”
What to doAsk only: knowing what I know now, would I start this today? What is already spent stays spent either way.