Sunk Cost Fallacy
Continuing an endeavor solely because of the resources you've already invested into it, even when it's clearly a lost cause.
THE TRAP TEST
1 / 5You bought a $100 non-refundable ticket to a concert. On the day of the show, a blizzard hits and you feel sick. You...
👇 Choose one option:
Loss Aversion
Humans feel the pain of losing something twice as powerfully as the pleasure of gaining something. Admitting a project is dead forces your brain to actually process the loss of the money, time, or effort. By continuing the project, your brain gets to pretend the loss hasn't happened yet.
The Concorde Illusion
The British and French governments continued funding the Concorde supersonic jet long after it was obvious it would never be financially viable. They kept pouring billions into it simply because they had already poured billions into it. This bias is literally named 'The Concorde Fallacy' in economics.
How to Defend Yourself
The Zero-Base Rule
Ask yourself: 'If I hadn't invested anything yet, would I start doing this today?' If no, quit.
Ignore the Past
Recognize that time and money already spent are gone forever. You cannot get them back.
Embrace the Pivot
Celebrate quitting. Reframe 'giving up' as 'optimizing resource allocation for the future'.