You've probably fallen for this costly psychological trap without realizing it. Learn why we can't quit failing ventures—and how to escape.

The sunk cost fallacy occurs when we use money, time, or effort we've already spent (and can't recover) as justification to keep investing in something that's clearly not working.

The sunk cost fallacy is our tendency to continue with something we’ve invested money, effort, or time into—even if the current costs outweigh the benefits. When we fall prey to the sunk cost fallacy, ...

The sunk cost fallacy is when you throw resources into a losing venture because you've already spent time or money.

Sometimes the sunk cost fallacy shows up in more complex ways that affect your long-term finances and life satisfaction, like with your career choices.

The sunk cost fallacy often muddies this inflection point—a psychological trap that tempts owners to chase poor investments or decisions, sometimes at the expense of more promising opportunities.

New research delves into the psychology of sunk costs, showing how dopamine release in the brain reinforces our tendency to overvalue things we’ve heavily invested in, leading to irrational ...

The sunk or lost cost in economics refers to those retrospective expenses that have been made and that cannot be recovered over time. According to the Economipedia, sunk costs include money, time ...

Don’t let the sunk cost fallacy get in the way of making healthy financial decisions. Understand the root of the lost cost bias trap and learn how to avoid its effects on your finances.

There are numerous cognitive biases that cost us money; the sunk cost fallacy is one of these quirks of the human mind. Learn more here.