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Sunk Cost Fallacy

The Sunk Cost Fallacy is the irrational tendency to continue investing in a course of action because of previously invested resources (time, money, effort) that cannot be recovered — rather than based on the future expected value of continuing. It is one of the most costly and pervasive decision-making errors in business, personal life, and public policy, and is driven primarily by loss aversion and the human tendency to frame decisions in terms of avoiding waste.