Sunk Cost Fallacy
There's an article in Slate about the Sunk Cost Fallacy. It's one of my favorite logical fallacies, and frankly, the coolest one without a Latin title. The article explains it better, but, in a nutshell, Sunk Cost Fallacy occurs when decision makers continue down a path because for no other reason than that they've already spent a lot of resources on the path. Ex:
We've already spent $80 million on Gigli if we were to abandon it, burn the negatives and never mention it again, we would have wasted all that money. Now get me another $20 million in ad buys in every market!
What's even cooler is that it's by a Barry Schwartz, a professor at Swarthmore.
Comments
Posted by Who at July 4, 2009 5:29 PM
