Loss Aversion and the Sunk-Cost Fallacy

www.bbc.com/capital/story/20180914-the-trick-to-learning-when-to-cut-your-losses What links these examples is the phenomenon of continuing to throw good resources (time or money) after bad, hoping for things to improve when there’s no good reason to believe they will. In other words, people are loath to cut their losses. We are much more likely to continue to senselessly plough time or…