https://diler.tube/videos/watch/e7615221-3f79-4fd9-b187-3fff1aa54b1d Learn how the sunk cost fallacy influences decision-making and discover strategies to avoid it in this 4:06 minute video lesson. Imagine you place a $5,000 non-refundable deposit on a venue for your wedding, but later decide to call everything off. What would be the cost of canceling? If you think it’s $5,000, you fell for what’s known as the sunk cost fallacy — a common cognitive bias. From an economic perspective, it's what we give up going forward with the decision to cancel and does not include the cost of the venue rental, because no matter whether we get married or not we’re out the $5,000. That choice has already been made and is irreversible. It has become what we call a sunk cost. Because sunk costs cannot be changed going forward, they are not relevant to the next decision. COLLABORATORS Script: Jonas Koblin and Jonas Jaquet Artist: Pascal Gaggelli Voice: Matt Abbott Coloring: Nalin Editing: Peera Lertsukittipongsa Sound Design: Miguel Ojeda Production: Selina Bador Proofreading: Susan SOUNDTRACKS Cannonball Swing - RimskyMusic DIG DEEPER with these top videos, games and resources: Listen to Annie Duke talk about the power of quitting Research on Animal decision-making and the ‘Concorde fallacy’ Read how researchers are measuring the sunk costs fallacy by presenting people with questions about what they would do in various hypothetical scenarios. Economist Mary Hirschfeld talks with Russ Roberts about the nature of our economic activity. The conversation includes a critique of economic theory, including regarding sunk cost as a fallacy. An overview of the sunk costs fallacy. SOURCES https://en.wikipedia.org/wiki/Sunk_cost The Psychology of Sunk Cost - Hal Arkes and Catherine Blumer (1985) http://www.communicationcache.com/upl... The Sunk Cost and Concorde Effects: Are Humans Less Rational than Lower Animals - Hal Arkes and Peter Ayton (1999) http://www.americandreamcoalition.org... Mary Hirschfeld on Sunk Costs https://www.econtalk.org/mary-hirschf... CHAPTER 00:00 Introduction 00:37 Jimmy's story 01:15 Sunk cost fallacy 01:56 experiment by Hal Arkes & Catherine Blumer 02:30 3 psychological reasons behind this behavior 03:14 What was your experience 03:40 Patrons credits 03:50 Ending Author: Sprouts Sat, 23 May 2026 22:10:19 GMT https://validator.w3.org/feed/docs/rss2.html PeerTube - https://diler.tube https://diler.tube/lazy-static/avatars/f58b270a-6076-478a-ad43-3888a532ecb4.png https://diler.tube/videos/watch/e7615221-3f79-4fd9-b187-3fff1aa54b1d All rights reserved, unless otherwise specified in the terms specified at https://diler.tube/about and potential licenses granted by each content's rightholder.