Sunk Cost Fallacy

What It Is: Sunk cost fallacy is the “I’ve come this far, I can’t turn back now” bias. We feel compelled to stick with something we’ve invested in, even if all signs point to an undesirable outcome.

Example: Imagine a manager who has poured resources into a failing project. Despite lackluster results, they keep funneling time, money, and energy into it, thinking that abandoning it would “waste” what they’ve already spent. A “strong opinions, weakly held” mindset would help them see the sunk cost objectively, allowing them to make a rational decision to pivot or stop the project based on what’s best now, rather than on past investments.