Debunking three sunk cost fallacies in selecting enterprise software

Has your business ever avoided investing in key software systems simply because of perceived high costs? This inaction is an example of a sunk cost fallacy.

Both psychologists and behavioural economists have noted that humans have a stronger natural tendency to avoid losses than to pursue gains. However, a sunk cost needs to be addressed differently than a risk of future loss because the sunk cost has already been paid and should be considered independent of future decisions....