托福口语 Task 3

The Sunk Cost Effect refers to the tendency of individuals to continue an endeavor once an investment in money, effort, or time has been made, even when continuing is not the rational choice. This cognitive bias occurs because people focus on past costs rather than future benefits. Rational decision-making would ignore sunk costs, but emotionally, people find it difficult to abandon what they have already invested in, leading to suboptimal outcomes.

Professor: Let me give you an example from a friend of mine. He bought a non-refundable ticket to a concert, but on the day of the show, he came down with a bad cold. He knew he would feel miserable at the loud, crowded venue and might even worsen his health. Still, he decided to go because he had paid a hundred dollars. When I asked why, he said, 'I can't waste that money.' In reality, the money was already spent and couldn't be recovered. By going, he only sacrificed his comfort and recovery time. If he had stayed home, he would have lost nothing more than the ticket price, which was already gone. His decision to attend was driven solely by the sunk cost, not by rational thinking about his well-being.