Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les's behavior best illustrates ________.
A) loss aversion
B) hyperopia
C) risk positioning
D) the sunk-cost fallacy

Question

Quizplus · Accepted Answer

Les's behavior illustrates the sunk-cost fallacy, which is the tendency to continue an endeavor once an investment in money, effort, or time has been made, despite the potential negative outcomes. In this case, Les continues to drink the root beer despite feeling full and the risk of getting sick because he doesn't want to waste the money he spent on it.

Les Just Bought a Megaphone of Root Beer