Sunk Cost Fallacy
- “why can't I quit something I've invested in”
- “I've come too far to stop now”
- “sunk cost fallacy relationship”
- “staying because of what I've already spent”
01 · Side by side
Side by side
Comparison sheet
| Aspect | Sunk cost fallacy | Loss aversion |
|---|---|---|
| Is | A behaviour | A feeling |
| Looks | Backward | At the reference point |
| Produces | Continued spending | Reluctance to realise |
| Named | 1985 | 1979 |
02 · Which one you meant
Which one did you mean?
In shortReaders who land here meaning Sunk Cost Fallacy rather than Loss aversion are usually searching for phrases like “why can't I quit something I've invested in”, “I've come too far to stop now”, “sunk cost fallacy relationship”.
Loss Aversion
- “why does losing hurt more than winning feels good”
- “why can't I sell a losing stock”
- “loss aversion explained”
- “protecting a streak I don't care about”
03 · Which came first
Which came first
In shortLoss aversion. 1979 — Prospect theory gives the value function a kink at the reference point — steeper for losses than for gains. Published in Econometrica by Kahneman and Tversky.
- 1979
Loss Aversion. Prospect theory gives the value function a kink at the reference point — steeper for losses than for gains. Published in Econometrica by Kahneman and Tversky.
- 1985
Sunk Cost Fallacy. Hal Arkes and Catherine Blumer publish 'The Psychology of Sunk Cost'. Buyers of a university theatre season ticket were randomly given the full $15 price, $13, or $8. Over the first half of the season, full-price buyers attended significantly more plays — identical tickets, identical shows, different amounts already spent.
04 · Read either one