The Psychology Behind It

Several forces power the sunk cost fallacy.

Loss aversion. Walking away feels like a loss, and losses hurt about twice as much as equal gains feel good. Continuing seems like it might still turn the loss around — even when the odds are tiny.

Cognitive dissonance. Admitting a mistake clashes with seeing yourself as a good decision-maker. Continuing eases that tension.

Waste aversion. Walking away triggers real discomfort — not because continuing adds value, but because waste itself feels wrong.

Social pressure. Others know about your investment, so quitting means publicly owning a mistake.