Marc and Jay spent $850 each for Super Bowl tickets. Unfortunately, the game was a blowout, and both of them were bored by halftime. Marc wanted to leave to attend a party, but Jay refused to leave early because they had paid so much for the tickets. Jay is subject to
A) altruism.
B) a framing bias.
C) overconfidence.
D) a sunk cost fallacy.

Question

Quizplus · Accepted Answer

Jay's refusal to leave early, despite being bored, because of the amount already paid for the tickets, is an example of the sunk cost fallacy. This fallacy 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.

Marc and Jay Spent $850 Each for Super Bowl Tickets