Sunk Cost Socks

Description: Sunk cost fallacy. The “sunk cost fallacy” is where sunk costs made in the past influence future investment. Whilst it may make sense to discontinue investment and “cut ones losses” often the fact of the past costs are used to justify continuing. This could be true of for example economic investments or relationships. Throwing good money after bad.

Description: The Sunk Cost Fallacy is committed when someone justifies maintaining or extending a course of action based on the cost already incurred (whether in terms of money, time, effort or intellectual capital).