Here’s one thing I’ve used in many business meetings to pretend to be really smart at my old jobs.There was a conversations going on about what new projects we should invest in and what old projects we should continue investing in.
I used to be a business consultant so I attended a lot of meetings like this and in many of them someone always made the argument that oh we’ve invested millions of dollar in project X and we can’t back out now.
And how you can sound smart when somebody says that is ask them “isn’t that a sunk cost fallacy?”
You don’t just say this for the sake of sounding smart, it’s a legitimate mistake everyone makes, including probably you.
Have you ever paid for a movie ticket, and then went in and half-way through you realized that the movie is absolute garbage? If you said to yourself that I paid 15 bucks for this ticket so I’ll watch the whole thing, that’s a sunk cost fallacy.
Whenever you are making a decision it has to be based on what will happen in the future not the time and money you have invested in the past, those costs have already sunk.
You were in a relationship and after 5 years realized this is not the right thing for me, but you continued because you told yourself I have invested so much time here, that’s a sunk cost fallacy.
You ordered too much food, and ate it all because you told yourself I paid for this I have to finish it, sunk cost fallacy.
You repaired your car recently and now it has another problem, if you make the decision to fix it because you’re telling yourself I’ve already spent so much for that previous issue. Sunk Cost Fallacy.
So next time you are making any decision it’s based on the added benefit and costs in the future, and not what you have already wasted up to that point.
Музыка
Фильмы
ТВ Шоу
Категории видео
