Sunk Costs Fallacies
Good morning again,
Have you ever heard the term “Sunk Cost Fallacy”? Recently, I had a conversation with my cousin about her thoughts on dropping out of university. Despite not wanting to attend the faculty that she chose, she has second thoughts because she has invested time and her parents have invested money. I explained to her that there is a term that explains her actions: “sunk cost fallacy.” In other words, when we invest time or money (or both) in something, as bad a choice as it seems in the present, it is hard to just abandon it. I glimpsed a blog by Gwern about this term and liked a slogan for avoiding the sunk cost fallacy: “Give up your hopes for a better yesterday!”