There is a snowstorm tonight, and the Toronto Maple Leafs game is going ahead as scheduled. Your roommate, Alexi, obtained a free ticket from a work associate and is staying home. You, however, paid $75 (non-refundable) and feel like you have to go. This is an example of:
A) cost-benefit dichotomy.
B) value perception.
C) brand loyalty.
D) sunk-cost fallacy.

Question

Quizplus · Accepted Answer

The decision to go to the game despite adverse weather conditions, based on the fact that $75 has already been spent (which cannot be recovered regardless of the decision made), exemplifies the sunk-cost fallacy. This fallacy occurs when ongoing commitment to a decision is justified based on previously invested resources (time, money, or effort) rather than current and future costs and benefits.

There Is a Snowstorm Tonight, and the Toronto Maple Leafs