Cognitive psychologyEasy
Continuing to invest in a failing project because of the money already spent is called the:
- AGambler's fallacy
- BAvailability heuristic
- CFraming effect
- DSunk cost fallacy
Show hints
- Past costs cannot be recovered, yet they still steer the choice.
- Two wrong answers are now crossed out. One of the remaining two is right.
Show the answer and explanation
Why this is the answer
The sunk cost fallacy is letting unrecoverable past investments influence current decisions, which should depend only on future costs and benefits.
Answer
D · Sunk cost fallacy