Ramiro has been an accounting major for three years, but he is not doing very well in his courses. He has, however, done very well in his law courses, but he doesn't want to change his major to law because he has already spent three years as an accounting major and does not want to feel like he wasted that time. Ramiro is subject to
A) altruism.
B) a framing bias.
C) overconfidence.
D) a sunk cost fallacy.

Question

Quizplus · Accepted Answer

Ramiro is experiencing a sunk cost fallacy, which occurs when an individual continues a behavior or endeavor as a result of previously invested resources (time, money, or effort), even if they would be better off changing course. In this case, Ramiro doesn't want to switch majors despite doing better in law because he feels that the time he has already spent pursuing accounting would be wasted.

Ramiro Has Been an Accounting Major for Three Years, but He