Sunk cost fallacy
nounsunk cost fal·la·cypronounced SUNGK kost FAL-ə-see
Last reviewed 16 April 2026
What does the noun Sunk cost fallacy mean?
The tendency to continue investing in something because of what you have already spent, rather than based on future value. Time, money, and effort spent on inspections and due diligence before an auction are sunk costs that should not influence your bidding limit.
How the noun Sunk cost fallacy is used
Don't let the sunk cost fallacy push you past your limit at auction just because you've already paid for inspections and legal advice.
Synonyms
escalation of commitment
Related words
Cite this entry
MLA citation: "Sunk cost fallacy." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/sunk-cost-fallacy. Accessed 29 May 2026.
Chicago citation: How to Property. "Sunk cost fallacy." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/sunk-cost-fallacy.
APA citation: How to Property. (2026, April 16). Sunk cost fallacy. https://howtoproperty.com.au/definitions/sunk-cost-fallacy