Sunk Costs, Farmville, and Zombies

“Most economic fallacies derive – from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another” -Milton Friedman

You Are Not So Smart has a great post about the sunk cost fallacy.

“If you dropped your cell phone over the edge of a cruise ship, you would need James Cameron’s unmanned submarine fleet to find it again. Sure, you could spend a small fortune to retrieve it, but you wouldn’t throw good money after bad. Laid out like this, logical and rational and easy to pick apart, you can pat yourself on the back for being such a reasonable human. Unfortunately, the sunk costs in life aren’t always so easy to see. When something is gone forever it can be difficult to realize it. The past isn’t as tangible a concept as the sea floor, yet it is just as untouchable. What is left behind is just as irretrievable.”

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