When you go to a doctor, he looks at you and suggests some tests. Once the reports are out, he calls you for a ‘consulting’. Then he tells you: Mr. A it is all stress. You look at your wife sitting next to you….and almost say ‘see it is all stress’. What is wrong […]
One very important fallacy is called the ‘Sunk cost fallacy’ – which makes us throw more good money after money already gone bad. Typically a lender keeps lending money to one customer hoping that this will enable the borrower to do well and repay ALL the money. Another manifestation of this is called ‘Averaging’ – […]