⬅️ Critical Thinking
- When one makes a hopeless investment, one sometimes reasons: I can’t stop now, otherwise what I’ve invested so far will be lost.
- Everything one has invested is lost regardless. If there is no hope for success in the future from the investment, then the fact that one has already lost a bundle should lead one to the conclusion that the rational thing to do is to withdraw from the project.
- To continue to invest in a hopeless project is irrational. Such behavior may be a pathetic attempt to delay having to face the consequences of one’s poor judgment.
- This fallacy is also sometimes referred to as the Concorde fallacy, after the method of funding the supersonic transport jet jointly created by the governments of France and Britain