Re: "Sold! One crips dollar bill for the low low price of $1.75!"
"The Dollar Auction is a simple game that illustrates a deeper human desire. Anything costs effort. The more effort put into it, the more intolerable it is to walk away."
That's a great illustration of the Sunk Cost fallacy, sometimes called the Concorde fallacy. It's hard to walk away from past efforts, be they time or money or both. When we are making a decision, past investments of time and money are largely irrelevant. We should only be concerned with how best to allocate our current and future resources. But we tend to be emotionally swayed by decisions we’ve already made and we make poor decisions as a result.
http://www.skepdic.com/sunkcost.html
Tweet This Topic
