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Sunk Cost Fallacy

The Sunk Cost Fallacy, a behavioral economics principle, reveals how individuals tend to continue investing resources into a project or decision despite diminishing returns or negative outcomes due to the reluctance to waste past investments. When incorporating the Sunk Cost Fallacy into employee messaging, it is important to address the fallacy by emphasizing the importance of future gains and potential benefits rather than being anchored by past investments.


Download the DataSheet to see three examples of how Sunk Cost Fallacy might be applied at your company, or click here to access a comprehensive guide on the 20 most effective behavioral economics principles and examples for applying them in your employee communications.


DesignLogics is a methodology that combines the power of behavioral economics principles with effective design and messaging strategies.


We use principles like Loss Aversion, Scarcity, Social Proof, and Anchoring to create communications that capture your employees' attention and motivate them to take action. And we're sharing our secrets with you!

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