After Janine bought a magazine subscription, she found she does not enjoy the articles in the magazine. However, she dutifully reads the entire magazine every month because she already paid for the subscription, and she feels the money will be wasted if she does not read it. What psychological factor associated with behavioral economics explains Janine's behavior?

Question

Quizplus · Accepted Answer

The sunk cost fallacy explains Janine's behavior, as she continues to read the magazine despite not enjoying it, because she feels she must get her money's worth out of the subscription she already paid for, even though that cost is irrecoverable.

After Janine Bought a Magazine Subscription, She Found She Does