Strategy | Project Management | US elections | Sunk Costs | Presidential debate
The Psychological Trap of Sunk Costs
Navigating the Sunk Cost Fallacy
The sunk cost fallacy is a very dangerous anti-pattern in projects.
A sunk cost is a cost that has already been incurred and cannot be recovered.
The sunk cost fallacy in projects is the reluctance to abandon a course of action because of the investments already put in it, even when it is clear that abandonment would be a more beneficial option.
The fallacy presents itself not only in financial terms (cost), but also as effort invested, or psychological involvement in the goals or outcomes.
Sunk costs in Biden’s Candidacy
Financial contributions
Significant amounts of money donated to Biden’s campaign by supporters and donors. These funds are considered sunk costs as they cannot be recovered, regardless of the campaign’s outcome.
Campaign infrastructure
Investment in campaign offices, technology, advertising, and logistics. These expenses are incurred upfront and are…
