COMPLETE Intro Psychology Course - ALL TOPICS - The Sunk-Cost Fallacy (Intro Psych Tutorial #95)

www.psychexamreview.com In this video I introduce the sunk-cost fallacy, which is when we make present decisions based on previous investments which aren't relevant. This fallacy can occur in the form of gamblers or investors who make increasingly risky decisions in order to make up for past losses. Tversky and Kahneman have suggested that part of the reason for this fallacy is that people tend to keep separate mental accounts of the costs of things, which then causes them to do things to even-out those accounts rather than thinking rationally of a single mental account. Don’t forget to subscribe to the channel to see future videos! Have questions or topics you’d like to see covered in a future video? Let me know by commenting or sending me an email! Check out my psychology guide: Master Introductory Psychology, a low-priced alternative to a traditional textbook: http://amzn.to/2eTqm5s Daniel Kahneman - Thinking, Fast and Slow (Amazon) http://amzn.to/2nAWnop