Sunk Cost Fallacy

Parent – Sorry I’m late.

Dr. B – Are you biking to work now?

Parent – Car’s in the shop.

Dr. B – Again?

Parent – Yeah.

Dr. B – What is it this time?

Parent – Brakes

Dr. B – Why do you keep that car?

Parent – Already put so much money into it. I can’t just get rid of it.

Dr. B – Oh, that makes sense.

Parent – So tell me where I’m wrong.

Dr. B – Do you know what the sunk-cost fallacy is?

Parent – A fallacy? Must have something to do with screwing up, right?

Dr. B – It’s an explanation for why we can throw good money after bad.

Parent – Like continuing to repair my car?

Dr. B – Exactly. Your reason was, “I’ve already put so much money into it”.

Parent – I did say that, didn’t I?

Dr. B – It’s kind of like loss aversion.

Parent – I thought that was trying to avoid losses?

Dr. B – Maybe getting rid of your car would make the loss real and you don’t …

Parent – Don’t say it.  I get your point. It’s still faster than your Honda.

Dr. B – Not when it’s in the shop, it isn’t.

Parent – What’s this got to do with parenting?

Dr. B – Absolutely nothing … except that if we are not able to spot our own cognitive biases, we won’t be able to help our kids spot theirs, will we?

Author: ahbtest

Dr. Beitel has decades of experience as a therapist, teacher and parent since earning his Ph.D. from the University of Illinois. As a member of the University of Illinois medical school faculty, Dr. Beitel supervises psychiatry residents in training. He is married to "the other Dr. Beitel", a family physician. He and Joyce have two grown children.

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