Why Your Brain Treats Sunk Costs as Non-Negotiable

Why do we keep pouring money into a failing project, a bad movie, or a miserable gym membership? In this episode of Behavioral Economics with Fexingo, Lucas and Luna dissect the sunk cost fallacy — the cognitive bias that makes us throw good money after bad. Through the lens of the Concorde supersonic jet, a joint venture that cost the British and French governments over one point seven billion pounds and never turned a profit, they explore why governments, corporations, and individuals all fall into the same trap. Lucas breaks down the psychology: we hate admitting loss, so we convince ourselves that quitting is more expensive than continuing. Luna pushes back with data showing that 84 percent of people admit to sticking with a bad service just because they prepaid. They also discuss how to escape the trap, using the 'non-owner perspective' test and zero-based budgeting. No abstract theory — just the hard numbers and mental models behind one of the most expensive biases in economics. #SunkCostFallacy #Concorde #BehavioralEconomics #CognitiveBias #LossAversion #EscalationOfCommitment #DecisionMaking #Economics #FexingoBusiness #BusinessPodcast #Psychology #Bias #SunkCost #ZeroBasedBudgeting #NonOwnerPerspective #BritishGovernment #FrenchGovernment #Aviation Keep every episode free: buymeacoffee.com/fexingo