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Know When To Quit – The Sunk Cost Fallacy

Support Better Than Yesterday: https://www.buymeacoffee.com/uQKkXCF6B Let’s say you buy a $10 movie ticket. But 15 minutes in, you realize this movie isn’t …

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  1. i would like to adress the 100$ thing. the video shows that we react to loses stronger than gains but the thought experiment doesnt show this: what if you first lost and than win? that would make u more happy than if you just won. say you lost your wallet and found it? you would be happier than if you didnt lose it. i think it's a matter of expectations. we expect things to stay as they are and maybe our feelings only compare "thing that happen" to "moment before it did" and that's how it determines if it's a good thing or not. this even works with pain. if you are healthy it's fine but if your leg hurts (or you had it broken or somthing) but then it heals then it feels great to have a healthy body.

  2. Been thinking about this subject a lot. I am in this situation as a college graduate.

    I'd rather not let 6 bad years into into another 25 bad years because I was trying to not waste those 6 years. Those years are gone and I am still taking the experience with me….

  3. When debating between going to Paris or to Rome, I would consider my next trip afterwards too. If I'm willing to go to Paris twice rather than go to Paris once and go to Rome once, I would choose Paris. If I would prefer to visit both cities once, I could choose to do the trip now what I think will be the most expensive next time. And then I could talk myself to go to Rome.

  4. "…Ithaka gave you the marvelous journey.
    Without her you wouldn’t have set out.
    She has nothing left to give you now.
    And if you find her poor, Ithaka won’t have fooled you.
    Wise as you will have become, so full of experience,
    you’ll have understood by then what these Ithakas mean."

  5. First example suggest the person has been to Paris before but NOT to Rome, because they KNOW vs THINK. Thus the conclusion is false. You choose Rome because you don't know what it will be like and because you never have been there so it's unknown and new. Passing up a trip to a new place based solely on past experience at another (which is NOT guaranteed to repeat) is a loss!

  6. Can you make something with dealing with pain? i have chronical migraines and things like drinking water or other good habits are way harder for me because i feel so bad, and those bad habits make me feel good sometimes, thats all why i do them, please consider.

  7. The BEST EVERY explanation of the sunk cost fallacy. So revealing and so true…a really great lesson to know when to end it all despite the wasted time, money and effort that's a fact that can never be changed…so time to get over it.

  8. SO

    I am no genius but I can understand why Rome might be the better pick.

    Despite whatever you choose, you will have spent $3,000 this we agree. However, Paris was at a steep discount and could possibly still be at a discount in a week or two.

    The problem with the fallacy argument is it does not take into consideration future opportunity versus loss. Rome did not appear to have a discount, so skipping Rome this time may lead to having to spend an additional $2,000 to go in a few weeks or so versus only paying an additional $1,000 to rebook Paris.

    In this case it would cost you a total of $4,000 total dollars to visit Rome first and Paris next versus $5,000 total cost to visit Paris first and pay full price again for Rome.

    Now, I know there is no guarantee the prices would change that way, but he can answer that problem right there, at the computer. Check dates and prices for future bookings before even beginning to make a decision, holy shit.

    The only way this "fallacy" applies is if you are never going to travel or spend money again then YES, you might as well visit Paris and enjoy yourself the most, though Rome would still be my choice in this case (but to each their own).

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