The tendency to be influenced by sunk costs and to continue to pour money into unviable projects is a common psychological phenomenon,which is called escalation of commitment.

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This statement is true. Escalation of commitment refers to the tendency to continue investing resources into a failing project based on the amount of resources already invested, even if it is not rational to do so. This phenomenon is influenced by cognitive biases such as loss aversion and the endowment effect.

The Tendency to Be Influenced by Sunk Costs and to Continue