Luigi drives two hours to a store to buy a Mikata circular saw. Unfortunately, the store sold its last Mikata saw just before Luigi arrived. Luigi decides to buy a lesser-quality saw so that his two-hour trip was not a waste of time. Luigi is committing the:
A) sunk cost fallacy.
B) marginal comparison fallacy.
C) ceteris paribus fallacy.
D) harmonization conundrum.

Question

Quizplus · Accepted Answer

Luigi is committing the sunk cost fallacy by letting his past investment (the two-hour drive) influence his decision to buy a lesser-quality saw, even though that investment cannot be recovered.

Luigi Drives Two Hours to a Store to Buy a Mikata