Do Sunk Benefits Cause Bias?
“If it ain’t broke, don’t fix it”
You often hear about the perils of sunk costs, but can sunk benefits lead to bad choices too? I can imagine many situations were people would cling to something because it had been beneficial in the past. Maybe that’s why our government is so insistent on keeping GM alive (Does anyone honestly believe GM will be an engine of growth in the future?). Sunk benefits might also play into resistance to change.