The Sunk Cost Trap: How Brands Keep You Hooked

The sunk cost fallacy is a cognitive bias that leads people to make irrational decisions by considering the costs they have already incurred (sunk costs) when making future decisions, even if those costs are irrecoverable and should be ignored. In other words, people tend to continue investing time, money, or effort into a project or decision because they have already invested a lot, rather than considering whether the expected benefits outweigh the additional costs. This can result in poor decision-making and can lead to further losses, both financially and in terms of time and resources.

The Secret Strategies of Marketing: How Brands Use Cognitive Biases to Win Your Wallet

Here are some examples of the sunk cost fallacy in everyday life:

• When someone decides to go to a movie, despite negative reviews, just because they have already paid for the ticket. They may feel that they need to get their money’s worth, even if it means spending additional money on travel, parking, and food, and dedicating several hours to the experience.
• Continuing to watch a movie or TV show or read a book that you are not enjoying, just because you have already…