What is Sunk Cost? ...and the Sunk Cost Fallacy?

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  • Опубликовано: 14 янв 2025

Комментарии • 36

  • @mrparkerdan
    @mrparkerdan 7 месяцев назад +2

    thank you for speaking slowly, helps me understand complicated concept better

    • @Onlinepmcourses
      @Onlinepmcourses  7 месяцев назад +1

      You're welcome. It's a deliberate choice because around half my audience is not from countries with English as a first language.

  • @romelanis
    @romelanis 8 месяцев назад +1

    Simple explanation of a critical term. Thanks

  • @عبدالقادرآلإبراهيم-ك5ط

    Nice video.. thanks

  • @mandeepkaur5897
    @mandeepkaur5897 2 года назад +1

    I have experienced sunk cost and sunk cost fallacy when i made an investment on bad movie during my college days. After watching this video, i can easily relate this concept to my own real life experience.

    • @Onlinepmcourses
      @Onlinepmcourses  2 года назад +1

      I hope you have gotten over it - never feels good! Thank you for the example.

  • @GodisGreatst
    @GodisGreatst 2 года назад +1

    Concise & very helpful.

  • @mohammedparveez5603
    @mohammedparveez5603 4 года назад +1

    Well explained

  • @elpelu123
    @elpelu123 4 года назад +1

    Drones... Perfect examples in finances...

  • @SenecaDunmore
    @SenecaDunmore 3 года назад +1

    Great video!

  • @dushimiye
    @dushimiye 2 года назад +1

    Your are amazing Micheal, I tweeted and started following you

  • @jimmys0307
    @jimmys0307 4 года назад

    Superb explanation!
    Thank You.

  • @bantywhatsnew
    @bantywhatsnew 4 года назад +1

    Good information thanks Sir

    • @Onlinepmcourses
      @Onlinepmcourses  4 года назад

      So nice of you

    • @wartome3196
      @wartome3196 3 года назад

      I don’t think so. What other fallacy can be done correctly? Who can appeal to the correct authority?
      By this claim, all sunk cost have to be a waste. Yet we know this isn’t true. So why are we pretending like it is to make the sunk cost fallacy a thing?

  • @kracha469
    @kracha469 2 месяца назад +1

    If 100000 spent then we can spend 50 and sell each drone for 500.

    • @Onlinepmcourses
      @Onlinepmcourses  2 месяца назад +1

      Yes... I don't follow. Is this a question or a statement?
      If the profit on expected sales exceeds the additional spend, then (risk aside) the additional spend can be justified.

  • @adamnussbaum3479
    @adamnussbaum3479 11 месяцев назад +1

    Sometimes these academics only know theory. Hence they always leave one ingredient out. Is there a market? And more importantly, is there a need within the market that is not getting satisfied?
    Re listen to this video and insert microsoft blackberry and apple.

    • @Onlinepmcourses
      @Onlinepmcourses  11 месяцев назад +1

      It's so easy to get caught up in the value we see in our ideas, that we cannot see the downsides (and, sometimes, absurdity) from an outside perspective.

  • @kirbyman1kanden7pf
    @kirbyman1kanden7pf 4 года назад

    yay the video finally unlocked

  • @wartome3196
    @wartome3196 3 года назад

    Since when can a fallacy be done correctly? It seems to me, all appeals to authority is the fallacy. You can’t say oh, no... this authority is trustworthy!! That’s the fallacy.
    So how exactly can you do sunk cost right? If my car is trash and I’ve spent so much money fixing it; ought it be ever reasonable to stop spending money on it and get a new one? Also couldn’t it be true that it’s worth putting more money into.
    What we have here is a fake fallacy, we have a third party telling the first party that their choices were not made because of correct logic but rather based on some illogical position.
    It’s wrong, this is not a fallacy. It’s a lie

    • @Onlinepmcourses
      @Onlinepmcourses  3 года назад +2

      I think you are wrong. I don't expect to convince you, but for anyone following this...
      If you have a used car, your decision on whether to spend money on repairing it should only be based on:
      - the cost of repair
      - the value you will get from the car, once repaired
      So, I did not imply (though you may have inferred) that we shouldn't invest in fixing a trashy car.
      The sunk cost fallacy is believing BECAUSE you spent loads on your car beforehand, you SHOULD spend more on it now. But, you should only do so, if what you spend now is justified by the benefit you get.
      Whether we should trust authority... I'd say, be sceptical of people claiming authority. But, if they have true authority, then consider their ideas within the domain of their authority.

    • @wartome3196
      @wartome3196 3 года назад +1

      @@Onlinepmcourses I get what you are saying but it doesn’t actually act like mall other fallacies.
      This is just a bad way of thinking about sunk cost. I’m not arguing that sunk cost and then need to feel vindicated on that cost, 100% on that. This is a true fact that some people think like this.
      My contention is that it’s not a fallacy. Sunk cost dilemma seems more accurate.

    • @wartome3196
      @wartome3196 3 года назад

      @@Onlinepmcourses also look at the video on my channel about vaush. He too argues that a “correct” authority is not an appeal to authority.
      It’s not, all authorities used..
      All, anyone. Even if he knows the most about a topic. If he’s used, it’s still an appeal to authority fallacy.
      Because, experts can be wrong. That is the fallacy. You don’t know FOR sure.. but you are saying it’s true because someone else said it.

    • @Onlinepmcourses
      @Onlinepmcourses  3 года назад

      @@wartome3196 Okay, I see. Maybe we have a case of potayto - potahto / tomayto-tomahto

    • @wartome3196
      @wartome3196 3 года назад

      @@Onlinepmcourses no