Which of the following is an example of the systematic bias of paying attention to sunk costs?
A) About 80% of the people on an Internet dating site rate their looks as very good or above average.
B) A person decides to save his overtime payment this week, but once he receives the payment, he spends it.
C) A person buys a product because it is listed at 80% off an inflated price.
D) People continue to play golf in a rainstorm because they don't want to waste the money they paid on greens fees.

Question

Quizplus · Accepted Answer

D is correct because it illustrates the sunk cost fallacy, where individuals continue an activity due to the investment they've already made (in this case, money spent on greens fees), despite not enjoying the current experience (playing in a rainstorm). This is a classic example of paying attention to sunk costs, which are past costs that cannot be recovered.

Which of the Following Is an Example of the Systematic