Guy bought tickets to a concert but there is a bad snow storm. He decides to go anyway because he paid for it. This is Endowment Effect Herd Mentality Overconfidence C Sunk Cost Fallacy

## Step 1<br />The problem presents a scenario where Guy has already bought tickets to a concert, but there is a bad snow storm. Despite the unfavorable weather conditions, Guy decides to go to the concert because he has already paid for the tickets. This situation is a classic example of a cognitive bias known as the Sunk Cost Fallacy.<br /><br />## Step 2<br />The Sunk Cost Fallacy is a cognitive bias where individuals continue a behavior or endeavor as a result of previously invested resources (time, money, effort) even if it is no longer beneficial or rational to do so. In this case, Guy's decision to attend the concert is influenced by the fact that he has already paid for the tickets, which is a sunk cost. This cost is irrelevant to the decision of whether or not to attend the concert, as the money has already been spent and cannot be recovered.<br /><br />## Step 3<br />The other options provided, Endowment Effect, Herd Mentality, and Overconfidence, do not accurately describe Guy's situation. The Endowment Effect is a cognitive bias where people overvalue things they already own. Herd Mentality is a psychological phenomenon where individuals in a group act in a similar way, often without thinking independently. Overconfidence is a state of being excessively confident in one's abilities or judgments.