There are many factors that affect the decision-making process, both personally and professionally. One factor is called “escalation of commitment”, when we commit further to a course of action or direction simply because of a past decision. This is often because of the sunk cost fallacy… a highly illogical but common thinking error. It is a major problem for companies weighing whether to persevere or reverse course on a decision. So what is the sunk cost fallacy and who is vulnerable to it? Is there a way to side-step this flaw when making business decisions? Continue reading