Browse Definitions :
Definition

sunk cost effect

The sunk cost effect is the tendency for humans to continue investing in something that clearly isn’t working.

Because it is human nature to want to avoid failure, people will often continue spending time, effort or money to try and fix what isn’t working instead of cutting their losses and moving on. This tendency, which is known as the sunk cost effect, can be illustrated by the adage “throwing good money after bad.”

In nature, the sunk cost effect is known as the Concorde effect. 

This was last updated in March 2013
SearchCompliance
  • OPSEC (operations security)

    OPSEC (operations security) is a security and risk management process and strategy that classifies information, then determines ...

  • smart contract

    A smart contract is a decentralized application that executes business logic in response to events.

  • compliance risk

    Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture and material loss, resulting ...

SearchSecurity
  • biometric verification

    Biometric verification is any means by which a person can be uniquely identified by evaluating one or more distinguishing ...

  • password

    A password is a string of characters used to verify the identity of a user during the authentication process.

  • biometrics

    Biometrics is the measurement and statistical analysis of people's unique physical and behavioral characteristics.

SearchHealthIT
SearchDisasterRecovery
  • What is risk mitigation?

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • change control

    Change control is a systematic approach to managing all changes made to a product or system.

  • disaster recovery (DR)

    Disaster recovery (DR) is an organization's ability to respond to and recover from an event that affects business operations.

SearchStorage
  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

  • VRAM (video RAM)

    VRAM (video RAM) refers to any type of random access memory (RAM) specifically used to store image data for a computer display.

  • virtual memory

    Virtual memory is a memory management technique where secondary memory can be used as if it were a part of the main memory.

Close