Question

You paid $100 for a ticket to the Broadway show Hamilton, for which your value of
attending is $250. In NYC the day the show, you legally sell your ticket on the secondary
market for $1,000. This is an example of?

Answer 1

Answer:

avoiding the hidden or sunk cost fallacy.

Explanation:

The hidden or sunk cost fallacy refers to not realizing that a sunk cost has occurred and no matter what you do, you will not recover it or in this case, enjoy it. A classic example are all you can eat buffets and people simply eating too much because they paid for it.

In this case, if you had not sold the ticket and not earned the profit, you would  have incurred in the sunk cost fallacy by not recognizing that you could benefit more from selling the ticket instead of just insisting on going to see the play.