There’s a good reason why we’re suspicious of new ideas: Many are unrealistic. But over time managers get conditioned to discounting anything that isn’t familiar. They dismiss ideas that challenge […]
Behavioral economics
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Back to news homeHow Susceptible Are You to the Sunk Cost Fallacy?
Many managers are susceptible to the famous sunk cost effect, whereby they persist investing in a money-losing project even when it makes sense to invest the new money in alternative […]