The sunk cost fallacy addresses the tendency of people to continue on a suboptimal path because they have committed a lot of time or resources to it already. Investors, for example, may double down on ...

It was a Words with Friends chat that first gave Megan Phelps-Roper pause. People have a marked tendency to cling to past investments, whether financial, social, or emotional—even when it becomes ...

Explore the sunk cost dilemma, a key financial concept impacting decisions on investing in failing projects. Learn how to manage it with real-world examples and insights.

Sunk costs refer to expenses that have already been incurred and cannot be recovered. In instances where sunk costs continue to influence either personal or business decisions (or both), investors may ...

As some Republicans express buyer's remorse about Donald Trump's selection of J.D. Vance as the “worst choice” for vice president and Joe Biden ditches his stubbornness about staying in the 2024 ...

Sunk cost fallacy involves continuing investments due to past costs, not future benefits. Recognize irrational holding by setting pre-determined exit points for investments. Regularly review ...