There is a snowstorm tonight,and the Toronto Maple Leafs game is going ahead as scheduled.Your roommate,Alexei,got a free ticket from a work associate and is staying home.You,however,paid $75 (non-refundable)and feel like you have to go.This is an example of:
A) cost-benefit dichotomy.
B) value perception.
C) brand loyalty.
D) sunk-cost fallacy.

Question

Quizplus · Accepted Answer

This situation demonstrates the sunk-cost fallacy because the $75 ticket cost is a sunk cost - it has already been paid and cannot be recovered. Going to the game solely because of the non-refundable cost ignores the current situation, such as the dangerous snowstorm, and is therefore an irrational decision. It would be better to prioritize safety and stay home rather than risk the dangers of the storm to attend the game.

There Is a Snowstorm Tonight,and the Toronto Maple Leafs Game