What emotional factor can lead to the Sunk Cost Trap?

The correct answer, which identifies fear of losing previous investments as the emotional factor leading to the Sunk Cost Trap, underscores a fundamental psychological bias that affects decision-making. When individuals or organizations have already invested time, money, or resources into a project, they may develop a strong emotional attachment to that investment. This attachment can cloud their judgment, causing them to continue committing additional resources to the project despite evidence suggesting that it may not be viable.

This fear stems from the desire to avoid loss, which often takes precedence over the rational assessment of future outcomes. People may reason that if they stop investing now, they will be admitting failure and will have wasted what they have already put in, leading to a commitment to continue along a potentially unfruitful path rather than accept the losses and cut their losses.

In contrast, the other options do not directly contribute to the Sunk Cost Trap in the same way. While optimism about future gains may lead some to continue investing in a failing project, it isn’t necessarily rooted in past investments, making it less relevant. The desire to maintain the status quo typically reflects a preference for stability rather than an emotional attachment to previous costs. Lastly, a willingness to take risks is more about the propensity to engage in uncertain ventures rather