Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les's behavior could best be described by which of the following mental biases?
A) loss aversion
B) hyperopia
C) risk positioning
D) the sunk-cost fallacy

Question

Quizplus · Accepted Answer

Les's behavior demonstrates the sunk-cost fallacy, which is the tendency to continue investing in a decision or activity because of the resources already invested, despite the fact that those resources are now unrecoverable and the decision or activity may no longer be beneficial. In this case, Les is determined to finish the megaphone of root beer because he paid for it, even though it may not be in his best interest to consume it all.

Les Just Bought a Megaphone of Root Beer