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Social Studies skills: Difference between revisions
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→Sunk cost fallacy
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* in non-financial analysis, especially historical, the sunk cost fallacy occurs when actors "double down" on a bad decision or situation | * in non-financial analysis, especially historical, the sunk cost fallacy occurs when actors "double down" on a bad decision or situation | ||
** doubling down has frequently occurred in politics and warfare | ** doubling down has frequently occurred in politics and warfare | ||
* an example of the Sunk cost fallacy was the "Concorde fallacy" | |||
** the British and French governments decided to keep spending money on the supersonic Concorde airliner despite having already lost huge amounts of money on it | |||
* related to Loss Aversion | * related to Loss Aversion | ||