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 ...

People tend to misunderstand the “sunk cost fallacy.” A firm invests in learning about a takeover target, and then hesitates to abandon the bidding or the search because it has sunk costs in this ...

Do you have a suit or dress in the closet that you haven't worn for years but are reluctant to get rid of? Maybe you say, “I can’t throw that away because I paid good money for it?” Or you have ...

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 ...

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 ...

The sunk cost fallacy is a theory that posits that we keep going down a path that may not be ideal because of the amount of ...

Joe Biden’s self-inflicted electoral crisis is a classic case study in the “sunk cost fallacy.” As Vice President Kamala Harris and party leaders pour resources into the president’s flailing campaign, ...

Recently, Horowitz visited a large lighting store in the Indianapolis area. The front of the showroom featured sleek, modern fixtures, but tucked away in the back was a section filled with older, ...

Sales is all about the art of closing the deal. Behind the curtain, that means a lot of patience, persuasion and persistence. But what if that determination hurts more than it helps? Today’s economic ...