The sunk cost fallacy, endowment effect, and other behaviors that lead to dumb money mistakes

by Lewsk55

Interesting video on the logical fallacies that can lead to dumb financial decisions:

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I thought the concept of the “endowment effect” was useful — the tendency for us to assign more value to the things we already own/paid for, then the things we could own. Or the sunk cost fallacy i.e. when you rent a terrible movie but feel compelled to finish watching it because you already plunked down $5 for it.

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