Sunk cost vs status quo
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One clings to what you already spent. The other clings to what you already have.
Sunk cost
Sunk-cost thinking lets a past loss decide a future choice. Money or time already spent is gone whether you continue or stop. The live question is which option is better from now on.
You keep attending a class you dislike because you have paid the fee, even though a different class would serve you better and the fee will not be refunded either way.
Open the cardStatus-quo bias
Status-quo bias prefers the current arrangement because it is current, and treats a change as a loss even when the change is the better expected option. There can be real costs to changing. The bias is counting “it is already so” as a reason beyond those costs.
A timetable wastes an hour a week. A better one is costed, including the nuisance of switching, and still wins. The reply is, “But this is the timetable we have.”
Open the cardHow to tell them apart
Sunk cost keeps a plan because time, money, or effort has already been paid. The payment does not change from here forward. The card asks what the next step is worth on its own.
Status-quo bias keeps the current arrangement because it is the current one. Change has to clear a higher bar than staying, even when staying is also a choice.
A long project can be both. You hate to waste the years, and you hate to disturb the setup. Split the reasons. What is already spent cannot be unspent. What is merely familiar still has to be compared with the alternative.
FAQ
What is Sunk cost?
Sunk-cost thinking lets a past loss decide a future choice. Money or time already spent is gone whether you continue or stop. The live question is which option is better from now on.
What is Status-quo bias?
Status-quo bias prefers the current arrangement because it is current, and treats a change as a loss even when the change is the better expected option. There can be real costs to changing. The bias is counting “it is already so” as a reason beyond those costs.
How do you tell Sunk cost from Status-quo bias?
Sunk cost keeps a plan because time, money, or effort has already been paid. The payment does not change from here forward. The card asks what the next step is worth on its own.