Re:The SEC “Modernizes” the Accredited Investor Definition
by hinkley on Thursday November 19, 2020 @08:08PM
(#25156363)
Sunk cost fallacy is one of the vectors that leads to “all-in”. They may have started off with a reasonable position, but rather than losing half their net worth they keep piling more in to try to rescue the rest.
The psychology of this occupies a chunk of Thinking Fast and Slow. People discount the probabilities when taking a bigger risk to avoid a loss.
The psychology of this occupies a chunk of Thinking Fast and Slow. People discount the probabilities when taking a bigger risk to avoid a loss.