John booked a flight on Fly-by-Night airline even though he had a horrible experience landing several hours late on the airline the last time he flew to Chicago.He could have booked the flight on another airline that he preferred over Fly-by-Night because the service was always impeccable and because it almost always arrived on time.But he had generated enough points after his previous flight on Fly-by-Night for a free round trip ticket and he had to use them or lose them within the next six months.John's decision to fly on Fly-by-Night is an example of:

Question

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John's decision to fly on Fly-by-Night despite his previous bad experience is an example of being unable to ignore sunk costs. He did not consider the opportunity cost of not taking the free round trip ticket and felt obligated to use it even if it meant traveling on a less preferred airline.

John Booked a Flight on Fly-By-Night Airline Even Though He