SUNK COST FALLACY - “What’s done is done... You’re just digging a deeper hole.” – Christopher Olivola

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Here’s a summary table of the TIME article: “The Sunk Cost Fallacy Is Ruining Your Decisions. Here’s How” by Jamie Ducharme:

Section	Summary
Definition	The sunk cost fallacy is the tendency to continue an endeavor based on previously invested resources (money, time, effort), even when it's irrational.
Expert Insight	Christopher Olivola (Carnegie Mellon) explains that people continue with things that make them worse off, just to avoid wasting their past investment.
Common Examples	- Wearing expensive but unwanted clothes- Going to events you dread because tickets were paid for- Staying in unhappy relationships
Psychological Drivers	- Cognitive dissonance: discomfort from not following through- Regret aversion- Desire to appear not wasteful to self and others
Impact of Others’ Investments	People also honor other people’s sunk costs (e.g., going to a concert because a coworker gave you the ticket)
Key Experiment – Travel	People preferred a more expensive trip (even if they liked the cheaper one more), just because it cost more—regardless of who paid.
Key Experiment – Cake	Participants were more likely to keep eating expensive cake despite being full, regardless of who bought it.
Takeaway Quote	“What’s done is done... You’re just digging a deeper hole.” – Christopher Olivola
Main Advice	Learn to let go of past investments. Don’t let lost costs trap you into bad decisions. Focus on present value and future benefit instead.

Would you like a printable version of this or tips on how to avoid the sunk cost trap in everyday life?