Less than a minute lesson -2662 Overcoming Sunk cost biases.

 

Less than a minute lesson -2662

Overcoming Sunk cost biases.

Sometimes, we make the same decision repeatedly, even when the previous decision is wrong. This tendency often stems from the time, money, and energy invested in that assignment/ Project/business. We feel compelled to continue pursuing it in hopes of recovering our investments. This behaviour is known as sunk cost bias.

Due to this bias, people often lose money in gambling or the stock market. To overcome this bias, we should be open to exploring other areas that may offer better opportunities and focus on learning more about them rather than getting stuck in the same situation.

 

M.L. Narendra Kumar

Director

Instivate Learning Solutions PVT LTD