Give two hypothetical examples of sunk-cost fallacy (SCF) and hidden-cost fallacy (HCF) from real life (1SCF + 1HCF). Explain briefly and clearly why your example is SCF or HCF. Examples of Sunk-Cost and Hidden-Cost Fallacies

Examples of Sunk-Cost and Hidden-Cost Fallacies

The sunk-cost fallacy (SCF) and hidden-cost fallacy (HCF) are two common cognitive biases that can lead to irrational decision-making. This paper will provide two hypothetical examples of each of these fallacies from real life and explain why each example is an SCF or HCF. An example of an SCF can be seen when a person continues to use an old, outdated computer that no longer meets their needs. The person may be hesitant to upgrade to a newer model because they invested a large sum of money into the old one. Although the old computer may be outdated and not meet their needs, the person may still choose to stick with it due to their prior investment. This is an example of SCF because the past costs that have been invested into the computer should not influence the decision of whether to upgrade or not, rather the decision should be based on whether the new model meets the needs of the person (Mooradian & Cowen, 2020). An example of an HCF can be seen when a person is shopping for a car and fails to consider the ongoing maintenance costs of the car. The person may focus. Cont…

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more