Sunk cost fallacy: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create page. Source: Cambridge dictionary: https://dictionary.cambridge.org/dictionary/english/sunk-cost-fallacy) |
imported>Doug Williamson (Simplify description.) |
||
Line 1: | Line 1: | ||
'' | ''Project appraisal''. | ||
The sunk cost fallacy is the | The sunk cost fallacy is the mistaken belief that already-committed costs ('sunk costs') are relevant for financial decision making. | ||
In reality it is only the opportunity cost of resources that is relevant. | |||
== See also == | == See also == | ||
* [[Cognitive bias]] | * [[Cognitive bias]] | ||
* [[ | * [[Opportunity cost]] | ||
* [[Sunk costs]] | * [[Sunk costs]] | ||
Revision as of 14:51, 31 March 2020
Project appraisal.
The sunk cost fallacy is the mistaken belief that already-committed costs ('sunk costs') are relevant for financial decision making.
In reality it is only the opportunity cost of resources that is relevant.