The Concorde fallacy, also known as sunk cost fallacy, refers to the irrational influence of costs that have already been 
incurred and cannot be recovered. It is so-called due to the British and French governments continuing to fund the Concorde project long after it was determined that it would never yield a profit.
It can be illustrated by the feeling when continuing in a hopeless investment that “I can’t stop now, otherwise what I’ve invested so far will be lost” (it is also known as “throwing good money after bad”)
So what does this have to do with your career? Well, sometimes you should disregard the sunken costs in a decision. I’m sure many a restaurant owner will have come across the predicament that their restaurant is loosing them money but they don’t want to close as they have invested a lot in it. Their projections for the future may be bleak and yet they keep plugging away. Why? because they have invested and lost a lot in the venture (large sunken costs), which influences their rational decision making.
There may be situations that aren’t as clear cut. For example if you have completed half your degree and you decide that you want to quit and get a job that you don’t need a degree for, then the sunk cost fallacy would suggest you quit (as not to spend any more time and money on a degree you don’t want. However, it is useful to have any degree behind you, especially if you are unsure exactly where your career will take you. Therefore, in this situation the sunken costs are important, as the further costs to get the degree qualification are less than they would be if the individual decides to get a degree later in life (and their course credits have expired). However, there are situations where you should ignore the sunk costs such as in this video example where a girl wants to change her degree subject. Over her lifetime the costs she incurred by changing her course will be insignificant compared to if she chose not to pursue the career path she wants.
What can you learn from this? I would say it is important to be aware of sunk costs. Try considering your decisions with and without the influence of the sunken costs before you make up your mind. Ultimately what matters is your future and you don’t want to be throwing your money away!
If you haven’t had time to make a New Year’s resolution yet – it’s not too late! It is important it is achievable so you stick with it – think tortoise rather than hare. If you think them through, then resolutions should be life changes that last longer than a year (rather than fizzling out at the end of January!). Here are some ideas to help you achieve 5 popular resolutions:
Looking back, there are so many reasons why it was useful for me to do an internship. First off, it helped me to clarify my career choices. I thought I knew for sure what I wanted to do, but how could I be sure without experience? Internships help you to figure out what sort of job you want… and perhaps more importantly you can work out which jobs you don’t want to do!
