Sunk Cost Fallacy
The sunk cost fallacy is a cognitive bias in which past investments of time, money, or effort influence ongoing decisions, causing a person or organization to continue a course of action even when future costs or benefits do not justify it.
Example: A company continues funding a nonperforming product line because it has already spent several million on development. Forecasts suggest future profits will be minimal, but past expenditures are cited as a reason to keep investing.
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