Unnamed comments on Sunk Cost Fallacy - Less Wrong

30 Post author: Z_M_Davis 12 April 2009 05:30PM

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Comment author: Unnamed 13 January 2011 06:41:15AM 2 points [-]

There's a closely related bias which could be called the Sunk Gain Fallacy: I know people who believe that if you buy a stock and it doubles in value, you should immediately sell half of it (regardless of your estimate of its future prospects), because "that way you're gambling with someone else's money".

That's called the house money effect (from Thaler & Johnson, 1990).