The pair of handmade green leather Italian shoes Michael ordered online finally arrive after waiting for 2 months.After wearing them for less than a week he discovered that the shoes are very uncomfortable.Michael went back to wearing an old pair with his green suits and stashed the new pair in the back of his closet.When asked by his boss why he doesn't simply give away the new pair, he said: "But I paid so much for them." Michael's behaviour

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Michael's behavior ignores the fact that the purchase price is now a sunk cost and has no bearing on whether he should give them away or not. The concept of sunk cost means that the money spent on a past purchase is already gone and cannot be recovered, therefore it should not factor into future decisions. Michael's attachment to the shoes based on the price he paid for them is an example of the sunk cost fallacy, which can lead to irrational decision-making.

The Pair of Handmade Green Leather Italian Shoes Michael Ordered