The Sunk Cost Fallacy

The Sunk Cost Fallacy involves continuing to invest time, money, and effort into an innovation or project even when it is not working due to an emotional attachment to the idea. This toxic mindset becomes even stronger the more previous investment has been made. However, it is crucial to be ruthless in evaluating the potential of a project and not consider past investment as a reason to continue it. This can be especially difficult for founders and members of an innovation team, who feel an emotional attachment to their ideas. Nevertheless, it is necessary to think of ideas objectively and allocate resources unbiasedly.