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Chapter 1: Problem 10

(Related to Solved Problem 1.1 on page 7 ) Late in the semester, a friend tells you, "I was going to drop my psychology course so I could concentrate on my other courses, but I had already put so much time into the course that I decided not to drop it." What do you think of your friend's reasoning? Would it make a difference to your answer if your friend has to pass the psychology course at some point to graduate? Briefly explain.

Short Answer

Expert verified
From an optimal decision-making perspective, the friend's reasoning demonstrates the sunk cost fallacy, and it would be better to drop the course if it’s detracting from other classes. However, if the course is essential for graduation, sticking with it is sensible. But in that case, the decision is guided by the necessity to graduate, not the sunk costs.

Step by step solution

01

Understand Sunk Cost Fallacy

First, realize that the reasoning described by the friend falls into the category of a sunk cost fallacy. It means that the friend has decided against dropping the psychology course just because he/she has already invested a lot of time in it, not because he/she believes it to be beneficial for future goals or academic performance.
02

Evaluate the Friend's Decision

From an optimal decision-making standpoint, the time already spent on the course is a sunk cost and should not influence future decisions. If the course is detracting from the performance in other courses, it might be more beneficial to drop it and focus on the other subjects.
03

Factor In Graduation Requirement

If the psychology course is a graduation requirement, then the friend's decision to persist with the course makes sense. However, it should be kept in mind that the decision in this context is not influenced by the sunk cost fallacy, but by the necessity to graduate.

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