Psychology

Throwing good money after bad because you already spent so much

Rational choice says only future costs and benefits should matter — money already spent is gone either way. But people keep funding failing projects and finishing bad meals just because they've already paid, a pattern nicknamed the 'Concorde fallacy' after Britain and France kept funding a supersonic jet for years after its economics had collapsed.

Richard Thaler, Toward a Positive Theory of Consumer Choice — Journal of Economic Behavior & Organization, 1980

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