The Story of Sunk Cost Fallacy and Stock Markets
4 min readJun 7, 2018
Sunk Cost is one of the most powerful concepts that drives the investor sentiment, hence the market. I got introduced to this amazing concept when I was reading a book namely “Stocks to Riches: Insights on Investor Behaviour” a few days back.
In economics, a sunk cost is any past cost that has already been paid and cannot be recovered.