The Concorde Fallacy

The most famous example is the Concorde supersonic jet. Britain and France poured billions into the project despite mounting evidence it would never be commercially viable. Internal reports warned it was economically doomed.

Still, they funded it for decades. Why? The billions already spent created irresistible psychological gravity. Cancelling meant admitting that money was wasted; continuing kept alive the illusion that it might one day pay off.

The Concorde retired in 2003, having never turned an overall profit. The total loss dwarfed what cancelling early would have cost. Some researchers argue animals show similar behavior, though that idea is debated — in humans, the pattern is unmistakable.