It’s irrational to consider a sunk cost in any part of any decision.
You’ll know a sunk cost is something that you’ve spent or invested, where there is little to no chance of you getting your initial investment back — it’s gone — It’s sunk. This becomes a problem when you’re using a sunk cost to base a future decision on; this is because this results in BAD decision-making.
Imagine this; You’ve just picked up a book and you realise that 97 pages in, you don’t like the book and you feel like putting the book down and starting a…
The Power Distance Index (PDI) model is used largely to consider the psychological and sociological attitudes people take to hierarchy and power.
People in societies with a low PDI tend to underplay their authority or position in the hierarchy, with a view to sharing power equally and providing greater justification for their position, compared to those societies with a higher PDI, which place a greater emphasis on hierarchy and power, with individuals less inclined to providing justification apart from their apparent position in the hierarchy.
The PDI plays a significant role in social interactions. Cultures with a higher PDI will…
Controversial? Yes. The only thing you hear nowadays is if you quit, you lose; winners never quit and quitters never win and so on, but ignore the people who tell you that; here’s why.
Evidently, no one has ever told these people about sunk costs and opportunity costs; the two most significant variables that should be taken into consideration when making a decision or thinking about quitting.
1. Sunk cost: “A cost that has already been incurred and thus cannot be recovered. Sunk costs are independent of any event that may occur in the future.” — Investopedia
A sunk cost…