Yesterday, Melinda bought a ticket for today's show. She has a migraine headache and normally would not go. However, she has already paid for the ticket, so she decides to go to the theater and get her money's worth. What behavioral bias is Melinda showing?
A) Being overconfident
B) Having self-control problems and using hyperbolic discounting
C) Falling prey to framing due to anchoring
D) Paying attention to sunk costs

Question

Quizplus · Accepted Answer

Melinda is demonstrating the sunk cost fallacy, which occurs when individuals continue a behavior or endeavor as a result of previously invested resources (time, money, or effort), even if they would not make the same decision again. The cost of the ticket is a sunk cost because it cannot be recovered, yet it influences her decision to attend the show despite her migraine.

Yesterday, Melinda Bought a Ticket for Today's Show