Features Characterizing The Sunk Cost Heuristic
Two specific features characterizing the sunk cost heuristic worth mentioning are:
- An overly optimistic probability bias, whereby after an investment the evaluation of one's investment-reaping dividends is increased.
- The requisite of personal responsibility. Sunk cost appears to operate chiefly in those who feel personal responsibility for the investments that are to be viewed as sunk.
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Famous quotes containing the words sunk and/or cost:
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—Anonymous. Quoted in Richard Chevenix Trench, On the Study of Words, lecture 1 (1858)
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—Ralph Waldo Emerson (1803–1882)