The Sunk Cost Fallacy: Why We Stick with Bad Decisions

Why do we keep pouring time, money, or effort into something, even when it’s clearly not working out? In this episode of Mind Theory, we dive into the sunk cost fallacy—a cognitive bias that leads us to stick with bad decisions simply because we’ve already invested in them. We’ll break down the psychological mechanisms behind this bias, such as loss aversion and the framing effect, and explore how it impacts everything from personal relationships to business decisions. Tune in to learn why we escalate our commitment to failing ventures and, more importantly, how to break free from the sunk cost trap.