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Avoid the Sunk Cost Trap to Make Good Decisions

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lifeoptimizer.org
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opportunity cost can help you use your time effectively. Now, I’d like to follow up on that by discussing another concept called sunk cost trap.

Along with opportunity cost, this concept can help you make good decisions.Here is a definition of sunk cost trap:Sunk cost trap refers to a tendency for people to irrationally follow through on an activity that is not meeting their expectations.

This is because of the time and/or money they have already invested.In other words, once you have invested your resources in something, you may tend to invest more in it even if it’s no longer the best use of your resources.

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