$PI Today I saw a Pi friend mention sunk costs, everyone can carefully read A Diao's expertise and take it slow. She understands human nature, and a small Pi friend is just like playing😂😂😂

Chengdiao Fan

Co-founder and Product Lead of Pi Network, PhD in Human Anthropology (Human Sciences) from Stanford University, native of Guizhou.

I. Educational Background

1. Undergraduate at Minzu University of China, then studied in the U.S., earning a PhD in Human Sciences from Stanford University, majoring in computational anthropology, social computing, human-computer interaction, and group behavior research, skilled in designing internet and blockchain products from sociological and anthropological perspectives.
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2. During the PhD, focused on large-scale community collaboration, online interpersonal relationships, and crowdsourcing systems research, with academic results applied to the underlying rules design of the Pi project.

Sunk Costs

1. Definition

Costs that have already been spent and cannot be recovered: money, time, energy, emotions, investments. Regardless of subsequent decisions, these investments cannot be retrieved.

2. Core Logic

Sunk costs should not influence future choices, but people are easily reluctant to let go of past investments, continuing to make mistakes on top of mistakes.

Examples

1. Watching a movie for half an hour is hard to do, but the ticket money is spent (sunk), forcing yourself to watch until the end = being hijacked by sunk costs;
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2. A certain project has already lost hundreds of thousands, knowing there’s no future, but unwilling to give up and keep pouring money into it;
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3. A strained relationship, after years of being together, feels unsuitable, but unwilling to part ways because of past efforts.