Ryan goes through the steps he had to complete in order to cancel his gym membership. By requiring all of the additional steps to opt out of the membership, it decreases the likelihood that individuals will actually cancel their membership and instead pay the monthly fee despite not wanting the service. Ryan even discusses how he’s fallen victim to the sunk cost fallacy because he walked by his gym on the way to purchase envelopes for the letter, but he was already “in too deep” to stop by and cancel in person.
Brad Paisley — I’m Gonna Miss Her
The song is about a guy that chose to go fishing instead of staying with his wife. It shows opportunity costs because he could either choose fishing where he didn’t know if he would catch anything or stay with his wife which could have been the best thing for him.
Thanks for the summary and the clip Aaron Wolfe! If you’d like to see more country music videos that have economic themes, check out Econ Gone Country.
Superstore — Non-refundable Movie Ticket
Glenn wanted to see Saw because he thought it was about carpentry, but he quickly realized it was a horror movie. He wasn’t having a good time and even threw up in his lap, but his wife didn’t want to leave because they paid for the ticket and it was date night. Glenn and his wife should have left if they weren’t enjoying their movie since the tickets were non-refundable, but like many people, Glenn and his wife fell for the sunk cost fallacy.
Wanda Sykes — Wanda’s Got a Gun
Wanda moved to New York and her family told her to go out and a buy a particular type of gun, one that would end up costing her $400. Falling victim to the sunk cost fallacy, Wanda feels like if she spends $400 on a gun then she needs to make sure that it gets used, even if it means using it on friends that she invites over.
Better Call Saul — Sunk Cost Fallacy
If you’re teaching the sunk cost fallacy, this clip from Better Call Saul can be used to define the term. Kim tries to convince Jimmy to keep being a lawyer because of how much time and effort he put into the bar exam. Jimmy cuts her off to teach her about the sunk cost fallacy and how it’s a waste of time.
Old Dominion: Break Up with Him
When I get to the chapter on sunk costs, I always play this music video before class starts. I typically use relationships in the behavioral portion of the class because most students can relate to the idea of sunk costs in terms of old relationships.