October 25, 2021
Sunk cost bias occurs when we have the tendency to continue investing time, effort, or money, because of what it has already cost us.
In the past, I have had numerous situations where it was difficult to terminate a project because of the emotional attachment to it. Although logically it made sense to terminate the project, I had an underlying optimism that it would all work out.
One thing I have learnt as I have gotten older is how to do this more easily. I now try to avoid getting to that point in the first place but if so, I engage in a candid conversation with the client, and if unresolved, then extricate myself with minimal fuss.
What signals do you use to identify sunken cost bias?