From the course: Universal Principles of Design

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Sunk-cost effect

Sunk-cost effect

From the course: Universal Principles of Design

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Sunk-cost effect

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- Hi, I’m William Lidwell and this is “Universal Principles of Design.” In this movie: “The Sunk Cost Effect: “The Power of Knowing When to Quit.” The Concorde SST was a supersonic jet airliner capable of getting you from London to New York in just around three hours. The plane was a technological marvel. One of only two commercial supersonic aircraft ever to enter service. Its top speed of over Mach 2 rivals the fastest fighter aircraft of today. Economically speaking, however, the plane was a disaster. Despite this, the British and French governments funded development of the Concorde long after they knew it would be a business failure. The question is why. After more than 30 years and a billion pounds in development and then more than 23 million pounds per plane, that’s about 125 million in today’s pounds, they had invested too much to quit. It took an unrelated accident on July 25th, 2000 killing all 100 passengers onboard to give the stakeholders involved the disruption and…

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