Sunk cost and the concorde effect

When the past influences the future

The Concorde effect is a famous example of sunk cost investment. Too often we invest time, money and energy into something we should've just abandoned.
Examples of regret avoidance

Regret | It’s not a nice feeling

Regret influences the decisions we make and pushes us to conform to social norms. Examples of regret avoidance show us how this makes complete sense yet no sense at all.
Default options and status quo bias

Default options and status quo bias

Default options nudge us to make better decisions. The option of opting out also respects freedom of choice. This post unpacks this notion of libertarian paternalism and the perils of status quo bias.
Anchoring effect examples

Anchors pulling you down?

Anchoring bias is a straightforward behavioural bias that causes us to focus on a certain initial value and then make decisions with reference to it. This post looks at some examples of this anchoring effect.
Loss aversion vs risk aversion

Loss Aversion vs Risk Aversion

Loss aversion vs risk aversion - do you know the difference? This post touches on prospect theory, the disposition effect and impression management.
framing effect examples

Size does matter… when it comes to framing

This post uses framing effect examples to show how framing bias influences the way we interpret information and make decisions.
How to avoid confirmation bias

Why you can’t argue with a Vegan

This post focuses on confirmation bias fallacy and cognitive dissonance theory. It includes tips on how to avoid confirmation bias.
Overconfidence bias in decision making

Mirror, mirror, on the wall, stop telling me I’m wonderful!

This post focuses on the impact of overconfidence bias in decision making. Specifically, we discuss the self-serving bias and the better than average affect to better understand our heuristics and biases.
Heuristics and biases in decision making

Heuristics and biases in decision making

We need to understand how heuristics and biases in decision making affect our relationship with money. Using System 1 and System 2 thinking examples, this post is the first instalment in a series on behavioural finance.
Financial trouble

Financial Trouble | Can’t Catch a Break

We feel like we can’t catch a break because our human nature works against us when we try to stay out of financial trouble. This article discusses 8 financial and behavioural pitfalls for us to be aware of.
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Sunk cost and the concorde effect
The Concorde effect is a famous example of sunk cost investment. Too often we invest time, money and energy into something we should've just abandoned.
Examples of regret avoidance
Regret influences the decisions we make and pushes us to conform to social norms. Examples of regret avoidance show us how this makes complete sense yet no sense at all.
Default options and status quo bias
Default options nudge us to make better decisions. The option of opting out also respects freedom of choice. This post unpacks this notion of libertarian paternalism and the perils of status quo bias.
Anchoring effect examples
Anchoring bias is a straightforward behavioural bias that causes us to focus on a certain initial value and then make decisions with reference to it. This post looks at some examples of this anchoring effect.
Loss aversion vs risk aversion
Loss aversion vs risk aversion - do you know the difference? This post touches on prospect theory, the disposition effect and impression management.
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About the Author

I am passionate about helping people understand their behaviour with money and gently nudging them to spend less and save more. I have several academic journal publications on investor behaviour, financial literacy and personal finance, and perfectly understand the biases that influence how we manage our money. This blog is where I break down those ideas and share my thinking. I’ll try to cover relevant topics that my readers bring to my attention. Please read, share, and comment. That’s how we spread knowledge and help both ourselves and others to become in control of our financial situations.

Dr Gizelle Willows



Dr Gizelle Willows

 

PhD and NRF-rating in Behavioural Finance