In practice,sunk costs often influence important decisions,especially when a decision maker does not want to admit that a previous decision was a bad decision.

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Sunk costs refer to costs that have already been incurred and cannot be recovered. Despite their irrelevance in the decision-making process, they often influence decisions due to the psychological reluctance to waste resources already invested. Therefore, when decision makers are faced with sunk costs, they may be less likely to change course, even if it means making a less optimal decision.

In Practice,sunk Costs Often Influence Important Decisions,especially When a Decision