Claudio Ranieri and the sunk cost fallacy

TFN Editor Hugo Greenhalgh on the sad reality of Claudio Ranieri’s sacking…

A few weeks, a group of friends and I were discussing the “sunk cost fallacy”. The theory is as follows: once a cost is “sunk” (ie. it cannot be recovered), we should never make a decision based on what has already been invested. For example, there is no point persevering with a bad film if you aren’t enjoying it – better to forget the time you’ve already wasted and watch something else. This kind of thinking can also apply to our personal lives; if a relationship is no longer enjoyable and run its course, we shouldn’t let the emotions we put in in the past affect the future. Continue reading