The sunk cost fallacy makes people continue an endeavor because they have already invested time, effort, or money, even when current costs outweigh benefits. section 11.3.2
The model that became too valuable to discard
A team has worked on an existing model for months, enduring frustration and repeated iterations. New information contradicts it, but emotional attachment makes redesign feel like throwing away the team’s hard work. The team instead deforms the model to preserve it. section 11.3.2
Recognize how the fallacy operates:
- Investment increases emotional attachment, making an existing model harder to discard. section 11.3.2
- Contradictory information can trigger model fitting: deforming, extending, or omitting elements to protect the initial model. section 11.3.2
- Availability bias, loss aversion, and sunk cost can reinforce one another, often unconsciously. section 11.3.2
