Sunk Cost Fallacy

This is the tendency to continue investing in a project or feature because of the resources already invested in it, even if it’s no longer the best use of resources.

A study by Harvard Business Review found that sunk cost fallacy can lead to poor investment decisions.

To overcome the Sunk Cost Fallacy:

• Evaluate the current situation objectively
• Consider the opportunity cost
• Reassess the cost-benefit analysis
• Be willing to let go