Retains users by highlighting previous investments
Can perpetuate bad decisions based on past commitments
Sunk Cost Fallacy explores how individuals' decisions and perceptions are influenced by underlying psychological mechanisms. Research on this bias has revealed its role in everyday behaviours and decision-making processes. Studies often involve experiments where participants' reactions are observed to determine the bias's impact. This understanding helps designers and marketers craft more effective, user-centric experiences.
The results indicate that sunk cost fallacy significantly influences decision-making by altering perception, recall, or emotional response. These findings provide valuable insights into cognitive behaviour, informing design strategies.
1.
Frame decisions on future benefits, not past costs.
2.
Encourage flexibility to avoid commitment traps.
3.
Test messaging for rational decision-making.
