{"id":8284,"date":"2015-10-12T07:05:08","date_gmt":"2015-10-12T11:05:08","guid":{"rendered":"http:\/\/www.ezrasf.com\/wplog\/?p=8284"},"modified":"2015-10-14T16:07:53","modified_gmt":"2015-10-14T20:07:53","slug":"sunk-cost-fallacy","status":"publish","type":"post","link":"https:\/\/www.ezrasf.com\/wplog\/2015\/10\/12\/sunk-cost-fallacy\/","title":{"rendered":"Sunk Cost Fallacy"},"content":{"rendered":"<blockquote><p>In economics, a sunk cost is any past cost that has already been paid and cannot be recovered. For example, a business may have invested a million dollars into new hardware. This money is now gone and cannot be recovered, so it shouldn\u00e2\u20ac\u2122t figure into the business\u00e2\u20ac\u2122s decision making process.<\/p><\/blockquote>\n<p>&#8230; from\u00c2\u00a0<a href=\"http:\/\/www.lifehack.org\/articles\/communication\/how-the-sunk-cost-fallacy-makes-you-act-stupid.html\">How the Sunk Cost Fallacy Makes You Act Stupid<\/a>.<\/p>\n<p>The article goes on to describe common situations where we fall for it. The solution of making a pro and con list did not really impress me. Really, the solutions are:<\/p>\n<ul>\n<li><strong>Be willing to cut losses and run.<\/strong>\u00c2\u00a0The <a href=\"http:\/\/www.ezrasf.com\/wplog\/2011\/04\/20\/cull-and-surrender\/\">Cull and Surrender<\/a> post is about being willing to cut out things not worth the time.<\/li>\n<li><strong>Actively expose mistakes to find.<\/strong>\u00c2\u00a0Embarrassment about being wrong or having made a mistake keeps us on the path of that bad place. <a href=\"http:\/\/www.ezrasf.com\/wplog\/2015\/05\/19\/ted-talk-on-being-wrong\/\">On Being Wrong<\/a>.<\/li>\n<li><strong>Act like the present is all there is.<\/strong>\u00c2\u00a0Past experience contributes to making a decision. But the present case should be handled as a new, independent situation and not a continuation.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In economics, a sunk cost is any past cost that has already been paid and cannot be recovered. For example, a business may have invested a million dollars into new hardware. This money is now gone and cannot be recovered, so it shouldn\u00e2\u20ac\u2122t figure into the business\u00e2\u20ac\u2122s decision making process. &#8230; from\u00c2\u00a0How the Sunk Cost [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"activitypub_content_warning":"","activitypub_content_visibility":"","activitypub_max_image_attachments":4,"activitypub_interaction_policy_quote":"anyone","activitypub_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[2005,3071],"tags":[3073,3074,1168,3072],"class_list":["post-8284","post","type-post","status-publish","format-standard","hentry","category-economics-science","category-logic","tag-critical-thinking","tag-decision-making","tag-economics","tag-logical-fallacies"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p1rUBW-29C","jetpack-related-posts":[],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/posts\/8284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/comments?post=8284"}],"version-history":[{"count":0,"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/posts\/8284\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/media?parent=8284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/categories?post=8284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ezrasf.com\/wplog\/wp-json\/wp\/v2\/tags?post=8284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}