Sunk Cost Dilemma
The economic approach that sunk costs should not be considered when decisions are being made can lead to a situation where the sum of a number of good decisions can lead to one big disaster. This dilemma situation can be described using a game theory approach for 1-player games.
The sunk cost dilemma with its sequence of good decisions should not be confused with the sunk cost fallacy, where a misconception of sunk costs can lead to bad decisions.
Read more about this topic: Sunk Costs
Famous quotes containing the words sunk, cost and/or dilemma:
“Her man falling asleep,
limp from dragging a plow sunk in mud,
the slattern curses the rains,
her pleasures unfinished.”
—Hla Stavhana (c. 50 A.D.)
“If music in general is an imitation of history, opera in particular is an imitation of human willfulness; it is rooted in the fact that we not only have feelings but insist upon having them at whatever cost to ourselves.... The quality common to all the great operatic roles, e.g., Don Giovanni, Norma, Lucia, Tristan, Isolde, Brünnhilde, is that each of them is a passionate and willful state of being. In real life they would all be bores, even Don Giovanni.”
—W.H. (Wystan Hugh)
“A sympathetic person is placed in the dilemma of a swimmer among drowning men, who all catch at him, and if he give so much as a leg or a finger, they will drown him. They wish to be saved from the mischief of their vices, but not from their vices.”
—Ralph Waldo Emerson (1803–1882)