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The sunk cost fallacy continues investing in something because of the resources already spent, rather than evaluating whether continued investment makes sense going forward. Money, time, or effort already spent is gone regardless of future decisions.
Also known as Concorde Fallacy, this is a informal fallacy — the error lies in the content or context of the argument rather than its formal structure.
"We've already spent $2 million on this project, so we can't stop now." The $2 million is gone whether you continue or stop. The question is whether additional spending is justified.
"We've spent $2 million and the project needs $1 million more to complete. Projected return is $800K. Stopping now loses $2M; continuing loses $2.2M. The better decision is to stop."
When making decisions about whether to continue, ignore what you've already spent. Ask only: given where we are now, does continuing make sense based on future costs and benefits? Past expenditure is irrelevant.
Paste your text above to scan for sunk costs fallacy patterns and other reasoning errors. Each flagged passage includes an explanation and a suggestion for making the argument stronger.
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