Sunk Cost Fallacy

NEED TO ACT FASTSYSTEM 1Motivation and Commitment Loss Aversion

Visual Metaphor

Definition

The phenomenon where a person is reluctant to abandon a strategy or course of action because they have invested heavily in it, even when it is clear that abandonment would be more beneficial.

Underlying Mechanism

Prospect Theory

Observable Markers

I've already invested
I can't quit now
I've put too much into this
I've come too far

Examples

I'll keep watching this bad movie because I paid for it
I can't leave this job, I've been here 10 years

Insight

Notice: narrative emphasizes past investment over future outcomes. Consider whether continuing is truly beneficial, regardless of past costs.

Visual analysis of Sunk Cost Fallacy cognitive bias showing NEED TO ACT FAST domain patterns — Unlock advanced bias analysis tools and comprehensive cognitive insights with Premium

Related Biases

Loss Aversion

The tendency to prefer avoiding losses to acquiring equivalent gains. The pain of losing $100 is psychologically about twice as powerful as the pleasure of gaining $100.

7-Layer Framework Associations

Layer 3Layer 5

Research Notes

Concorde Effect is the political instance; Escalation involves active investment increase.

Literal Visualization

Loading video...

Click to play/pause • Hover for controls