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Sunk cost fallacy vs loss aversion 0:42
A 42-second explainer of Sunk cost fallacy vs loss aversion, narrated over the same demo you can try yourself.
Try the interactive Sunk cost fallacy vs loss aversion demo
What this video covers
Loss aversion is the tendency for losses to feel worse than equivalent gains feel good. The sunk cost fallacy is one error that this bias can lead you into: continuing with something just because quitting would mean acknowledging what you’ve already spent is gone. One is the bias; the other is the mistake it can cause.
Sorting the cases, you could feel the line between them: loss aversion weighs a loss you might still take; sunk cost clings to one you already took and cannot undo. Mix them up and you reach for the wrong fix.
