The fallacy persists because it ties into loss aversion and identity. Walking away means admitting a loss, which our brains resist fiercely. It also means admitting we made a bad call, which threatens our self-image.

Culture reinforces the trap. We celebrate persistence and grit without separating productive perseverance from wasteful stubbornness, so quitting carries a stigma even when it is clearly the right move.

That emotional weight explains why logic rarely persuades anyone to abandon a failing project. The money is gone either way. But walking away feels like admitting the sacrifice meant nothing.