Sunk cost
what is a sunken cost
The sunk cost fallacy is when people keep doing something just because they’ve already spent time, money, or effort on it-even if it no longer makes sense to continue. Instead of focusing on what’s best for the future, they let past investments they can’t get back affect their decisions.
What is FOMO?
the anxious feeling that others are having rewarding experiences without you, often triggered by seeing what people are doing in the own life . It’s the worry that you’re missing out on fun,
what is cognitive bias
Cognitive bias is a systematic error in thinking that occurs when people process and interpret information through the filter of their own experiences, beliefs, and preferences, leading to deviations from rational judgment.
You paid for a movie ticket and, despite not enjoying the film after 30 minutes, you stay until the end because you already spent the money
Small situations like this can lead to more spending over take, taking a second to rethink if you truly need something can help you avoid situations like that
Is FOMO commonly triggered by seeing social media posts about events you didn’t attend
100% yes
When buying a car, the dealer starts with a high price. Any lower price afterward seems like a bargain, even if it’s not actually a good dea
anchoring bias
You have two job offers-one with higher pay, the other with better work-life balance.
this is a trade off between what your used to vs what you need to do
Do you find yourself checking social media constantly to see what your friends are doing so you don’t miss out on anything is this fomo?
Yes
A manager believes an employee is not a team player. They notice only behaviors that confirm this belief and overlook evidence to the contrary, leading to unfair evaluations
Confirmation bias
You keep paying for a gym membership you never use because you’ve already paid for several months upfront
irrational decisions by focusing on past investments instead of the future lead to being in sunken fallacy situationships
When you see friends posting about an event, do you feel relieved that you have time to rest instead of wishing you were there?
JOMO = Joy of missing out
A surgeon attempts a complex procedure solo, despite never having performed it before
overconfident bias
Picking between two apartments: one with a better location, the other with better amenitie
this comes down to priority's over comfortability
Deciding whether to accept a job offer in a new city or stay at your current stable job, weighing career growth against personal comfort.
this would be anxiety about the future.
Continuing to repair an old car because you’ve already spent a lot on it, even though buying a new one would be wise
sunken cost fallacy