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Sunk-Cost Effect
“The ticket is paid for and the play is dull. How much of that money can your next hour recover?”
01 / SUMMARY
In short
A sunk cost cannot be recovered, yet it can keep shaping later choices. People persist to avoid feeling that time, effort, or money was wasted even when continuing worsens future outcomes.
03 / SCENE
In the wild
A team keeps an unworkable project alive because it already spent six months on it, although a new option promises better results from now on.
04 / LIMIT
The limit
Quitting is not always wise; past investment may reveal information or build capabilities that genuinely alter future returns.
FINAL NOTE
What remains
Compare only the costs and benefits each option can produce from this point forward.