imagine that, after having repaired your old car three times in the last few months for similar faults, you now face the choice of spending money yet again for a further repair or buy a new vehicle. What behavioural bias will likely push you toward a further repair as you will have the feeling otherwise that all previous efforts were in vain?
A) Sunk-cost fallacy.
B) Dunning-Kruger effect
C) Anchoring.
D) Endowment effect.

Question

Quizplus · Accepted Answer

The sunk-cost fallacy is a bias where individuals continue a behavior or endeavor as a result of previously invested resources (time, money, or effort), even if they would not start the endeavor knowing what they know now. In this scenario, the decision to repair the old car again, despite repeated issues, is influenced by the desire not to waste the money already spent on previous repairs.

Imagine That, After Having Repaired Your Old Car Three Times