What is the most classic example to explain to someone about the theory of sunk cost bias?
When making a decision to do any action, you must weight the costs and benefits. One cost you mustn't consider though is a sunk cost. A sunk cost is a cost that has already been paid and you will never get back. In effect, you must move through life looking forward not backward.
Answer and Explanation: 1
The best example of a sunk cost is a purchased movie ticket. Assume you are a student and you bought a ticket to a movie tonight for $15. Now assume...
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fromChapter 31 / Lesson 8
Understand the sunk cost definition. Learn the meaning of sunk cost and sunk cost trap with the help of the sunk cost examples and sunk cost fallacy examples.