Misbehaving · Richard Thaler

The sunk cost fallacy examples

Curated by · reviewed 2026-05-31

The sunk-cost fallacy is throwing good time, money, or effort after bad — because of what you've already spent, which you can never get back. Common examples:

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5 examples of the sunk cost fallacy

  1. Finishing a movie you hate

    It's bad an hour in, but you've "already started," so you sit through two more hours you'll never get back instead of doing something you'd enjoy.

  2. Staying in the wrong job or degree

    "I've put three years in" keeps people in a path that no longer fits — the years are gone regardless of whether you stay one more.

  3. Eating past full at a buffet

    You paid for all-you-can-eat, so you keep going to "get your money's worth," trading a pleasant meal for feeling sick.

  4. Pouring money into a dying project

    A company keeps funding a failing product because of the millions already spent, instead of asking what's best to do from today forward.

  5. Repairing an old car again and again

    Each repair feels justified by the last one, until you've spent more than the car is worth chasing the money you already sank into it.

How to spot it in yourself

You'll forget most of this by next week.

That's just how memory works. Lock the sunk cost fallacy in with a 5-minute active-recall session — spaced repetition, no signup.

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