Category: General Knowledge | Last updated: 2026-09-18

A person continues to invest a significant amount of money and time into repairing an old, unreliable car, despite knowing that buying a new, more efficient car would be more economical in the long run. They justify their actions by stating, "I've already put so much into it, I can't just give up now." This decision-making pattern exemplifies which cognitive bias?

A) Endowment Effect

B) Framing Effect

C) Sunk Cost Fallacy

D) Status Quo Bias

Explanation

The Sunk Cost Fallacy is the tendency to continue an endeavor or pursuit because of previously invested resources (time, money, effort), even when it is clear that doing so is irrational or no longer beneficial, out of a desire not to have 'wasted' the prior investment.

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