Sunk costs can play a significant role in decision-making, as people and businesses may be more likely to continue pursuing a particular course of action if they have already invested significant resources in it.

This is known as the sunk cost fallacy, and it can lead people to make irrational decisions that are not in their best interests. For example, an individual might continue to attend a university course that they are not enjoying because they have already invested a lot of time and money in it, even if they would be better off dropping out and pursuing a different course of action.