Consider two friends with tickets for a professional basketball game a long drive from where they live. On the day of the game, there is a big snowstorm. The higher the price the friends paid for the tickets—their sunk costs—the more likely they are to brave the blizzard and attempt driving to the game, investing more time, money, and risk. In contrast, the rational approach would be to disregard what they have already invested and stay home. The sunk-cost fallacy applies to individuals, groups, and whole organizations.
