Market Dynamics
“Once you pass that gate, there’s no turning back, Wukong” encapsulates the economic principle of the sunk cost fallacy, which posits that individuals are more likely to continue investing in a decision, despite evidence that it is not profitable, simply because they have already invested. This phenomenon can have significant market implications, as it can lead to overinvestment in failing projects and missed opportunities for more profitable ventures. For instance, the 2008 financial crisis was partly attributed to investors continuing to pour money into subprime mortgages, despite mounting evidence of their high risk.
