Sunk Costs - Features Characterizing The Sunk Cost Heuristic

Features Characterizing The Sunk Cost Heuristic

Two specific features characterizing the sunk cost heuristic worth mentioning are:

  1. An overly optimistic probability bias, whereby after an investment the evaluation of one's investment-reaping dividends is increased.
  2. 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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