How Smart People Make Bad Decisions

Sunk cost make smart people make bad decisions. We shouldn’t feel like we are exonerated from this trap.

The problem with sunk costs is that most people have a hard time ignoring them, even when they know they should. They feel attached to past investments in time, money, status…

When Seth Godin says that a sunk cost is a gift to you from your past self, the emphasis is on gift. A gift is free, and you can choose to accept it or not. You are not bound to keep it.