Interactive graph
Sunk Cost Fallacy
Table of Contents
Drop the bad tool or project when it stops earning its place - past effort is gone either way.
Key Concept
- I ask: if I found this today, would I start it?
- Level 1: Ask yourself: if you just found this project today, would you actually start it now?
- Level 2: Past time and money already spent should not force future spending - the question is whether you would start fresh today.
- Level 3: Sunk costs distort decisions because loss feels louder than opportunity - the fallacy keeps you funding what you would not choose anew.
- Level 4: Run the fresh-start test before the next deposit of time or money - if not today, cut or redesign.
- Level 5: Forgiveness runs the same play on relational debt; Turn the Other Cheek adds stopping more anger after sunk hurt.
- Forgiveness runs the same play on relational debt.
- Turn the Other Cheek adds the move: stop throwing more anger after sunk hurt.
Examples
- I kept running a set play that lost four straight because we would drilled it all preseason - sunk cost is asking whether I keep it because it cost time, not because it still works.
- The shop kept the broken POS because they would paid the install fee - forward question only: would I buy this system fresh today?
Note Relationships
| Relationship | Wikilink | Reason |
|---|---|---|
| alternative | Turn the Other Cheek | Cut the sunk cost vs absorb the hit - different exits from the same trap |
| contradicts | Forgiveness | when I keep collecting on a grudge I should release |
| contradicts | Rollback Principle | when “we already deployed” blocks undoing a bad release |
| extends | Behavioral Economics | Bias cluster this fallacy belongs to |
| extends | There Is No Perfect Solution | Past effort is gone - ask if you would start this today, same as dropping a bad plan for perfect |
