Sunk Cost Fallacy

The Fallacy

Reasoning that further investment is warranted on the fact that the resources already invested will be lost otherwise.

Why it's wrong

It can be hard to give up on something one has put a lot of effort or money into, but it is irrational to continue to invest in something that is clearly not working out. The time or money already spent is gone and cannot be recovered; the decision to continue should be based on future outcomes, not past losses.

Example

Even though the movie was terrible and he was only 20 minutes in, John refused to leave the theater because he had already paid $15 for the ticket.

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