Chris purchased a 21-speed road bike for $1,000 but found after a couple of weeks that he did not ride it as often as he thought he would, so he decided to sell it. He listed the bike on a local bike selling website and received several offers less than $1,000, but he refuses to sell for less than what he paid for it. This is an example of _____.

Question

Quizplus · Accepted Answer

Chris is exhibiting the sunk cost fallacy by refusing to sell the bike for less than $1,000, despite the fact that the money spent is a sunk cost and should not influence his decision to sell.

Chris Purchased a 21-Speed Road Bike for $1,000 but Found