https://youarenotsosmart.com/2011/03/25/the-sunk-cost-fallacy/
!The Misconception: You make rational decisions based on the future value of objects, investments and experiences.
The Truth: Your decisions are tainted by the emotional investments you accumulate, and the more you invest in something the harder it becomes to abandon it.”
Extract
” Kahneman says organisms that placed more urgency on avoiding threats than they did on maximizing opportunities were more likely to pass on their genes. So, over time, the prospect of losses has become a more powerful motivator on your behavior than the promise of gains. Whenever possible, you try to avoid losses of any kind, and when comparing losses to gains you don’t treat them equally. The results of his experiments and the results of many others who’ve replicated and expanded on them have teased out a inborn loss aversion ratio. When offered a chance to accept or reject a gamble, most people refuse to make take a bet unless the possible payoff is around double the potential loss.
Behavioral economist Dan Ariely adds a fascinating twist to loss aversion in his book, Predictably Irrational. He writes that when factoring the costs of any exchange, you tend to focus more on what you may lose in the bargain than on what you stand to gain. The “pain of paying,” as he puts it, arises whenever you must give up anything you own. The precise amount doesn’t matter at first. You’ll feel the pain no matter what price you must pay, and it will influence your decisions and behaviors.
In one of his experiments, Ariely set up a booth in a well-trafficked area. Passersby could purchase chocolates – Hershey’s Kisses for one penny a piece or Lindt Truffles for fifteen cents each. The majority of people who faced this offer chose the truffles. It was a fine deal considering the quality differences and the normal prices of both items. Ariely then set up another booth with the same two choices but lowered the price by one cent each, thus making the kisses cost nothing and the truffles cost 14 cents each. This time, the vast majority of people selected the kisses instead of the truffles.
If people acted on pure mathematical logic, explained Ariely, there should have been no change in the behavior of the subjects. The price difference was the same. But you don’t think in that way. Your loss aversion system is always vigilant, waiting on standby to keep you from giving up more than you can afford to spare, so you calculate the balance between cost and reward whenever possible. He speculates that this is why you accumulate free tchotchkes you don’t really want or need and why you find it so tempting to accept shady deals if they include free gifts or choose decent services that offer free shipping over better services that do not. When anything is offered free of charge, Ariely believes your loss aversion system remains inactive. Without it, you don’t weigh the pros and cons with as much attention to detail as you would if you had to factor in potential losses.
How my heart sings 