Richie just spent $1,000 fixing his car even though the mechanic told him the car will continue to need expensive repairs that may total more than the vehicle is worth. Richie is likely experiencing the _____.

Question

Quizplus · Accepted Answer

The sunk cost fallacy is the tendency to continue investing in a decision or course of action because of the resources (time, money, effort) already invested, even if it may not be rational to do so. In this case, Richie has already invested $1,000 into fixing the car and may feel compelled to continue investing money into the car even if it is not worth it in the long run.

Richie Just Spent $1,000 Fixing His Car Even Though the Mechanic