Sunk cost is the principle that resources already invested (money, time, effort) cannot be recovered and should not influence future decisions. Parameters: (1) irreversibility — the invested resource cannot be recouped through any current action; (2) irrelevance — rational decision-making discounts sunk costs entirely, considering only future costs and benefits; (3) fallacy — the systematic human tendency to let sunk costs distort decisions, continuing investments solely to justify prior expenditure. Persistence mechanism: economic theory and decision-analytic practice teach the principle; behavioral economics documents and quantifies the fallacy. [formal: sunk cost | substrate: mind | horizon: a moment | explicit: yes | epoch: 0.01]
Accepted ontology entry
sunk-cost
Sunk cost is the principle that resources already invested (money, time, effort) cannot be recovered and should not influence future decisions. Parameters: (1) irreversibility — the invested resource cannot be recouped through any current…
Definition
Why it is in scope
A cognitive bias in behavioral economics where people continue an endeavor because of previously invested resources (time, money, effort), even when the expected current and future benefits do not justify continuing. Human-made concept from decision theory and behavioral economics, persisted through academic literature, business training, and popular psychology.
Names and aliases
- sunk-costen · CANONICAL
Relations from this entry
- cmrmwufxy01pxd1nllvxs1o1sINSTANCE_OF →
Direction tested: sunk-cost IS a specific kind of cognitive-bias — the tendency to continue an endeavor due to previously invested resources. A competent speaker calls sunk-cost 'a cognitive bias.' Law 9: specific→general.
- cmrnpwjwq02y6d1nl4am3t71xSERVES →
Sunk cost is a cognitive bias concept maintained for the sake of decision-making — it warns against letting past unrecoverable costs dictate future choices. Servant→master per Law 8d. Built to serve rational decision-making by flagging irrational persistence.
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Record identity
- Created
- Jul 21, 2026, 6:00 PM UTC
- Content hash
- d76d56b2b189b1138c54045ed3d44c045b342ceabd5060c19ffdc8e9afc9c0f2