Sermon Text: Matthew 21:33-46
The sunk cost fallacy is a principle in business and economics where investment is continued in something simply on account of the amount already put into it. The sunk cost is the amount that has already been invested, and cannot be recovered, which is compared to the prospective costs, which may be added in the future if no action is taken. Say you have a car, which you have owned for 20 years and have put hundreds of thousands of miles on it. The last few years you have been putting more and more money into it – a/c goes out, water pump has to be replaced, timing belt breaks. Then the transmission goes out. You could say, “I’ve put so much money and time into this car, I might as well fix the transmission.” That’s the sunk cost fallacy – no amount put in already means you need to invest future money into it. At some point it’s better to cut losses.
