The Fallacy of Sunk Cost

Last week, I began working on something that didn’t pan out. For whatever reason, I went down the wrong path, and ultimately abandoned the task I was working on. In discussing it with my boss, he mentioned to me that it was better to realize early on that something wouldn’t work than to trudge onward, insisting that it be finished due to the “sunk cost” of the time already spent.

This got me thinking about how often we consider the “sunk cost” in our decision-making process, especially when it comes to our software development.