A past cost that cannot be recovered

What is the sunk cost fallacy?

Continuing something because of what you already invested

Why is it also called the Concorde fallacy?

Britain and France kept funding the jet despite losses

Concorde crashed in its first flight

In Arkes and Blumer's study, which trip did many people choose?

The more expensive one, even if they expected less fun

Which example shows the fallacy?

Staying for a bad movie because you paid

Which everyday phrase describes the fallacy?

A penny saved is a penny earned

Which question can help avoid the fallacy?

Would I start this today if I had not already invested?

Sunk Cost Fallacy Quiz: Why We Throw Good Money After Bad

Finishing a dull movie because you paid for the ticket feels natural, but economists call it a mistake, and this sunk cost fallacy quiz explains why. Play an interactive set of 10 questions on sunk costs, rational choice, the Concorde fallacy, escalation of commitment, Arkes and Blumer's ski trip study, loss aversion, everyday examples and how to avoid the trap.

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🎯 Daily Trivia Challenge • 🧠 10 Questions • ⏱️ 150 Seconds

Question 1 / 10 Time: 150s

Define
What is a sunk cost?
Fallacy
What is the sunk cost fallacy?
Rational
What should a rational decision consider instead?
Concorde
Why is it also called the Concorde fallacy?
Escalation
Which related idea did Barry Staw study in 1976?
Ski
In Arkes and Blumer's study, which trip did many people choose?
Loss
Which bias helps explain the fallacy?
Movie
Which example shows the fallacy?
Phrase
Which everyday phrase describes the fallacy?
Avoid
Which question can help avoid the fallacy?

Explanations: answer key for all 10 questions

Q1: What is a sunk cost?
Answer: A past cost that cannot be recovered
It is already spent.
Q2: What is the sunk cost fallacy?
Answer: Continuing something because of what you already invested
Past costs drive the choice.
Q3: What should a rational decision consider instead?
Answer: Future costs and benefits
Sunk costs do not change outcomes.
Q4: Why is it also called the Concorde fallacy?
Answer: Britain and France kept funding the jet despite losses
The project ran over budget for years.
Q5: Which related idea did Barry Staw study in 1976?
Answer: Escalation of commitment
People double down on failing choices.
Q6: In Arkes and Blumer's study, which trip did many people choose?
Answer: The more expensive one, even if they expected less fun
The trips overlapped.
Q7: Which bias helps explain the fallacy?
Answer: Loss aversion
Losses feel worse than gains feel good.
Q8: Which example shows the fallacy?
Answer: Staying for a bad movie because you paid
The money is gone either way.
Q9: Which everyday phrase describes the fallacy?
Answer: Throwing good money after bad
It warns against doubling down.
Q10: Which question can help avoid the fallacy?
Answer: Would I start this today if I had not already invested?
It focuses on the future.

Sunk Cost Fallacy Quiz – Why We Throw Good Money After Bad

A sunk cost is money, time or effort already spent that cannot be recovered. The sunk cost fallacy is continuing a choice because of past investment rather than future benefits, which rational decision-making says should matter.

It is also called the Concorde fallacy, after Britain and France kept funding the supersonic jet despite mounting losses. Barry Staw studied the related escalation of commitment in 1976, and loss aversion helps explain why people double down.

In a 1985 study by Hal Arkes and Catherine Blumer, many people chose a pricier ski trip they expected to enjoy less. A useful question is whether you would start the project today if you had not already invested.

What This Quiz Teaches

Psychology fans will enjoy these questions.

What sunk costs are
Why the fallacy happens
Which studies show it
Which examples are common
How to avoid it

Did You Know?

Businesses fall into it with failing projects.
Gamblers chasing losses show a similar pattern.
Children may be less prone to it than adults.
Some animals show similar behavior.
Recognizing it can save time and money.