Loss Aversion · Feb 2026
Sunk Cost Fallacy
! The only cost that matters is future cost. @ Kahneman & Tversky
The Sunk Cost Fallacy is the tendency to continue an endeavor once an investment in money, effort, or time has been made. It keeps people in bad projects and bad jobs. CLN forces you to wall off the past to see the present clearly.
01/The Anatomy of the Trap
. Resource Spent: Time, money, or emotion already gone.
. Loss Aversion: The brain hates to "waste" the investment.
! The Fallacy: Pouring more resources into a losing proposition to justify the past.
02/Isolate the Past CLN Pattern

In CLN, we use specific operators to separate accounting from decision-making:

- Historical Cost: Mark past spending with -. It is a non-actionable fact.
? Decision Frame: Focus only on future requirements and future value.
Spent: $50,000 / 6 months
Required: $30,000 / 4 months
03/Zero-Based Thinking

The only question that matters for ? DECISION lines:

"Knowing what I know now, would I start this today?"
* Self-Test: If the answer is "No", what is the CLN action? || Stop immediately. The past investment is irrelevant to future utility. ||
04Decision Example
= CASE: Failing Software Project
- Spent: 2 years of development.
. Fact: Competitor just released a better version for free.
? If starting fresh today, would I build this?
- No → Kill project (Stop the bleeding).
+ Result: Saved 1 year of future wasted effort.