Loss Aversion Bias

Numerous studies have shown that people feel losses more deeply than gains of the same value (Kahneman and Tversky 1979, Tversky and Kahneman 1991). Goldberg and von Nitzsch (1999) pages 97-98 A friend of mine, we’ll call him Joe so I can feel free to ridicule him publicly, complained to me the other...

Sunk Cost Fallacy

Sunk Costs are costs which have already been incurred and cannot be recovered. The Sunk Cost Fallacy is a mistake in reasoning in which you consider the sunk costs of an activity (instead of the future costs) when you decide whether you should continue the activity or not. “I’ve put everything I...

Incoherence

I’ve had a few people ask me to clarify what I mean when I say that a statement is “incoherent.” There are three types, each increasingly sinister. Type 1 Incoherence `Twas brillig, and the slithy toves Did gyre and gimble in the wabe: All mimsy were the borogoves, And the mome raths...