Rose bought a mattress for her guest bedroom for $100, on sale. The mattress is nonreturnable. Although everyone who has slept on the mattress said it was very uncomfortable, Rose will not get rid of it because she spent $100 on it. What psychological factor associated with behavioral economics explains Rose's behavior?

Question

Quizplus · Accepted Answer

The sunk cost fallacy explains Rose's behavior, as she is reluctant to get rid of the mattress due to the money already spent on it, despite it being uncomfortable and nonreturnable. This fallacy involves continuing a behavior or endeavor as a result of previously invested resources (time, money, or effort), even when it may not be the best decision moving forward.

Rose Bought a Mattress for Her Guest Bedroom for $100