Sunk Cost Release
Effort and money already spent are unrecoverable — ignore them when evaluating continue vs exit.
Goal
Liberate the present decision from the weight of unrecoverable past investment, which forces many leaders to continue failing projects.
Steps
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1
Identify the project/relationship/commitment in question.
Expected Outcome
Evidence base
School: Behavioral Economics / Sunk Cost Fallacy
Founders: Hal Arkes · Catherine Blumer (1985)
Documented in Arkes-Blumer experiments (1985) showing investors destroyed more chasing sunk amounts. Universal in investing, marriage, projects.
Keywords
Frequently asked questions
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