Behavioral New World April 1, 2022 Sunk costs—don’t get weighed down[1] A sunk cost is a payment or expense that you’ve made that can’t be undone. You paid the money, it’s gone, that’s it. For example, if you have bought a ticket to a football game – the kind you are not allowed to resell – the money you spent on that ticket is sunk. The money is gone the minute you spent it, as if it has sunk to the bottom of the ocean and will be there forever. (And don’t expect Jacques Cousteau or anyone else to go get it for you.)
Sunk costs
Sunk costs
Sunk costs
Behavioral New World April 1, 2022 Sunk costs—don’t get weighed down[1] A sunk cost is a payment or expense that you’ve made that can’t be undone. You paid the money, it’s gone, that’s it. For example, if you have bought a ticket to a football game – the kind you are not allowed to resell – the money you spent on that ticket is sunk. The money is gone the minute you spent it, as if it has sunk to the bottom of the ocean and will be there forever. (And don’t expect Jacques Cousteau or anyone else to go get it for you.)