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.
Read more about this topic: Sunk Costs
Famous quotes containing the words features, sunk and/or cost:
“Each reader discovers for himself that, with respect to the simpler features of nature, succeeding poets have done little else than copy his similes.”
—Henry David Thoreau (1817–1862)
“Every disastrous accident alarms us, and sets us on enquiries concerning the principles whence it arose: Apprehensions spring up with regard to futurity: And the mind, sunk into diffidence, terror, and melancholy, has recourse to every method of appeasing those secret intelligent powers, on whom our fortune is supposed entirely to depend.”
—David Hume (1711–1776)
“The Fountaine of parents duties is Love....Great reason there is why this affection should be fast fixed towards their children. For great is that paine, cost, and care, which parents must undergoe for their children. But if love be in them, no paine, paines, cost or care will seeme too much.”
—William Gouge (20th century)