At the individual level, the Sunk Cost Fallacy often does not lead to major consequences. With companies, however, it is a risk, just as it was with the government at the time with the Concorde. Imagine, for example, that you have been investing for 3 years in a revolutionary new aircraft that flies faster than what we currently know. You are putting tens of millions into it as a company.
You need to invest another two million over the next year to put the plane into production. But, you unfortunately just find out that there is a competitor who has developed an even much better model that comes to market at the same time and offers more advantages than your model on all fronts. What do you do then?
Then when you do invest two million to put the plane into production, you fall into the Sunk Cost Fallacy. 'But, otherwise it's a waste of the earlier investments, isn't it?' You have already made the earlier armenia mobile numbers list investments; the two million you now want to invest extra can still be kept in your pocket. If you already know that the plane will be overtaken by the competitor, it is better not to keep investing in it, despite all the previous years' investments you have already made.The Sunk Cost Fallacy becomes clear in the example below:
A few months ago you bought a concert ticket for €150. That's a lot of money, but you're really looking forward to it. Unfortunately, on the day of the concert it's raining cats and dogs and you don't feel very well. Moreover, huge traffic jams are expected towards the concert location: what do you do then?
If you do go, you probably fall into the Sunk Cost Fallacy. Because, suppose the ticket had been free, would you also go and stand in a traffic jam for hours while feeling unwell, to go to a concert in the rain? If the answer to that is no, you shouldn't go now either, despite the fact that the ticket cost you €150.
After all, you've already incurred those costs. Whether you go or not, you've already lost the money. What you do have a say in is what your day looks like. You can join the traffic jam and then stand in the rain. Or you can stay comfortably on the couch, with a hot cup of tea. It's not a waste of the concert ticket (and expense) if you don't go. It's actually a waste of the potentially more enjoyable or comfortable day if you do go.