What is sunk cost fallacy?
Continuing to invest because of what has already been spent rather than judging the asset on current value and future prospects. The original cost is irrelevant to whether to keep owning.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.