Wednesday, October 22, 2014

Chapter 15 Sunk Cost Fallacy

Sunk cost fallacy is the thought of if you have already invested (time/money) in something (car/video games) that you should continue to put investment in it regardless of if the situation may be pointless or a waste of your time. I have seen this from people around me do anything from collecting something that isn’t worth money to cars like I have experienced myself. The thought of people continuing to put money into something is mind blowing because of how bad the economy is anymore and you see people end up wasting a lot of time and effort. This could be a large part in the whole lesson learning in life however I am sure that almost everybody does something that is in regard to the sunk fallacy cost.

I have experienced this myself when I got back to Hawaii from my deployment because instead of me buying a new car, which I could have, I went with buying a 2004 Cadillac DTS. I had been in love with the car for many years leading up to when I found one that I liked and wanted and my ignorance lead me to buy it for cheap even with the pre existing issue going on. I had dumped over six thousand dollars into the car over the two and a half years I owned the vehicle. I wanted nothing more than to have the vehicle set up and made the way I wanted it to be ideally and instead of cutting ties with it like I had been told to consider I learned that a lemon is a lemon.


Due to the experiences I have had with this factor I found this part of the chapter to be the most significant to myself and probably many others we have these kinds of lessons to show how much we can be dedicated to something regardless of where it will leave us.

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