Concept
Sunk Cost Fallacy
The tendency to keep investing in an existing product paradigm or decision because of what has already been spent on it, even when starting over would produce a better outcome.
Sunk Cost Fallacy
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Related Frameworks6
Related Practices27
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Transcript mentions
… you have a lot of kind of sunk cost in that existing paradigm, it's very painful to create a new thing from scratch
… Really, really, really just understand the stuff that we are making decisions about and be willing to don't put too much stake into the sunk cost fallacy. Try to inoculate business or your parts of a company from a sunk cost fallacy as…
And then on top of that is the fact that there is this issue of sunk cost, which is when we walk away, we feel like we'll have wasted everything that we've already put into what we're doing. But of course, waste is a prospective problem,…
… Sunk cost fallacy, just the worst. And it's because, A, we got arrogant and we thought we could do it.
- Brandon Chu00:13:23
… But what's really amazing and also difficult to push off by though is like we're pretty good at never falling in a sunk cost fallacy. So we'll throw it all away anytime if the world changes, right?
Concept
Sunk Cost Fallacy
The tendency to keep investing in an existing product paradigm or decision because of what has already been spent on it, even when starting over would produce a better outcome.
Related Frameworks6
Related Practices27
Ask about this concept
Transcript mentions
… you have a lot of kind of sunk cost in that existing paradigm, it's very painful to create a new thing from scratch
… Really, really, really just understand the stuff that we are making decisions about and be willing to don't put too much stake into the sunk cost fallacy. Try to inoculate business or your parts of a company from a sunk cost fallacy as…
And then on top of that is the fact that there is this issue of sunk cost, which is when we walk away, we feel like we'll have wasted everything that we've already put into what we're doing. But of course, waste is a prospective problem,…
… Sunk cost fallacy, just the worst. And it's because, A, we got arrogant and we thought we could do it.
- Brandon Chu00:13:23
… But what's really amazing and also difficult to push off by though is like we're pretty good at never falling in a sunk cost fallacy. So we'll throw it all away anytime if the world changes, right?