The tendency to continue investing in a failing project in the hope of turning it around is called the sunk cost effect

Question

Quizplus · Accepted Answer

The definition given in the statement is accurate, which indicates that the statement is true. The sunk cost effect refers to the inclination to persist with a project, even if it is no longer profitable, due to the investment already made in it. This can result in additional investment being made even though it is unlikely to change the outcome.

The Tendency to Continue Investing in a Failing Project in the Hope