Sunk Costs

The Bounded Mind ← Series Home The Foundational Vulnerability The wreckage of failed business ventures often points to glaring operational errors, misjudged market timing, or simple lack of capital. Yet, critical analysis reveals a deeper, more insidious cause: the pervasive influence of the unstated premise. Projects frequently fail not because managers cannot assess whether their beliefs are false, but because they do not even realize they are making them. This critical blind spot stems from the fact that incorrect assumptions are hidden, passing unnoticed beneath the surface of detailed business plans. ...