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Philosophi autem in suis lectulis plerumque moriuntur. Duo Reges: constructio interrete. Piso igitur hoc modo, vir optimus tuique, ut scis, amantissimus. Fortasse id optimum, sed ubi illud: Plus semper voluptatis? Transfer idem ad modestiam vel temperantiam, quae est moderatio cupiditatum rationi oboediens. Negare non possum. Haec quo modo conveniant, non sane intellego. At ille pellit, qui permulcet sensum voluptate.
Quacumque enim ingredimur, in aliqua historia vestigium ponimus. Nihil illinc huc pervenit.




- Ask, ‘does this cost have an impact on what will happen in the future?’
Identify Sunk Co ... Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quamvis enim depravatae non sint, pravae tamen esse possunt. Hic quoque suus est de summoque bono dissentiens dici vere Peripateticus non potest. Hanc quoque iucunditatem, si vis, transfer in animum; Ut pulsi recurrant? Eiuro, inquit adridens, iniquum, hac quidem de re; Ergo hoc quidem apparet, nos ad agendum esse natos. Ergo ita: non posse honeste vivi, nisi honeste vivatur? Duo Reges: constructio interrete. Non pugnem cum homine, cur tantum habeat in natura boni; Quae enim adhuc protulisti, popularia sunt, ego autem a te elegantiora desidero. Odium autem et invidiam facile vitabis. Primum in nostrane potestate est, quid meminerimus? Cur haec eadem Democritus? Longum est enim ad omnia respondere, quae a te dicta sunt. Isto modo, ne si avia quidem eius nata non esset. Nihil opus est exemplis hoc facere longius. At iste non dolendi status non vocatur voluptas. Quod autem magnum dolorem brevem, longinquum levem esse dicitis, id non intellego quale sit. Primum divisit ineleganter; Claudii libidini, qui tum erat summo ne imperio, dederetur. In eo enim positum est id, quod dicimus esse expetendum. Quae similitudo in genere etiam humano apparet.
Identifying a Sunk Cost can be difficult when there is no precise way of comparing a loss to a gain. The desire to not appear wasteful also can limit your ability to base a decision on relevant costs exclusively, especially when you feel personally responsible for the investments representing sunk costs.
The Concorde Fallacy.
The Concorde Fallacy is an alternative name for the sunk cost fallacy, coming from the way the British and French governments continued to co-fund the development of the expensive Concorde supersonic aeroplane even after it became financially untenable. Their previous investment, financially and politically, was thought to determine the ongoing funding.
Eat too much?
A common example of the sunk cost fallacy is when someone buys a large meal, then overeats to ensure ‘they get their money worth’.
The sunk cost fallacy is an unconscious bias that arises from accounting and financial domains. It is an important consideration in decision making.
Use the following examples of connected and complementary models to weave the sunk cost fallacy into your broader latticework of mental models. Alternatively, discover your own connections by exploring the category list above.
Connected models:
- Cost-benefit analysis: to consider actual pros and cons of a choice
- Opportunity cost: to consider the potential loss of a future facing decision.
Complementary models:
- First principle thinking: in breaking down a situation to its basics.
- Inversion: considering the opposite, e.g. ‘how can we continue to make that loss again?’
- The Lindy effect: to challenge sunk costs and seeing past longevity as a potential positive.
- Availability heuristic: being overly impacted by immediate situations and losses.
- Lock-in effect: is there greater friction to breaking from the status quo.
Read N. Gregory Mankiw’s Principles of economics for information on various economic theories that involve the concept of sunk costs.
This brief article references some of the relevant studies arising from Behaviorual Economics and the Sunk Cost fallacy. Check this video resource for a quick overview of the sunk cost concept and how it applies to the Concorde supersonic plane case.

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