sunk cost fallacy
[/sʌŋk kɔːst ˈfæləsi/]
nounpl: sunk cost fallacies
falácia do custo irrecuperável
1. A cognitive bias where individuals continue investing in something because of previously invested resources (money, time, effort) that cannot be recovered, rather than evaluating the decision on current and future costs and benefits
He continued pouring money into the failing business due to sunk cost fallacy, unable to accept that his initial investment was lost.
Ele continuou investindo dinheiro no negócio falindo devido à falácia do custo irrecuperável, incapaz de aceitar que seu investimento inicial estava perdido.
2. The mistaken reasoning that past investments should influence future decisions, leading to irrational economic and personal choices
Staying in a bad relationship because you've already spent years together is an example of sunk cost fallacy.
Permanecer em um relacionamento ruim porque você já passou anos juntos é um exemplo da falácia do custo irrecuperável.
This term is particularly prevalent in American and Brazilian business education, management consulting, and behavioral economics discussions. In Brazil, it has become increasingly common in corporate training and financial literacy programs. The concept is often used to explain poor investment decisions in both personal and organizational contexts, and understanding it is considered important for financial responsibility and rational decision-making in both cultures.
NYC Slang
throwing good money after bad
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