From Jon Wallis
The authors of “Call it quits”, Peter Ayton and Hal Arkes, found that what
psychologists call sunk-cost fallacy is known as the Concorde fallacy by
ethologists. I write to report another variation, this time in the field of
retail microeconomics, which I have for years referred to as “the leverage
purchase”.
When shopping in my local supermarket I sometimes put a lemon into my
trolley. Having thereby “invested” all of about 20 pence, I invariably feel
compelled to purchase a bottle of gin to justify buying the lemon.
Similarly, selection of a small bottle of Scottish spring water “leverages” a
somewhat larger one of single malt whisky, and a simple carton of tomato juice
necessitates Tabasco, Worcestershire sauce and a bottle of vodka.
I am greatly comforted to know that there is a scientific explanation for my
actions.
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Wolverhampton, West Midlands
