What is the sunk cost fallacy, and how can start-ups avoid this decision-making error?

by | Apr 8, 2025 | Glossary entry

Sunk cost fallacy refers to a cognitive error of judgement in which decisions are made on the basis of irreversible investments that have already been made - instead of being based on future costs and benefits. A typical example is sticking with projects even though they no longer objectively promise any added value simply because time, money or energy has been invested. In a business context, this false conclusion can lead to inefficient use of resources and poor strategic decisions. Rational action requires the conscious differentiation of sunk costs and forward-looking thinking.

AI start-ups are booming - and investors are listening very closely

AI start-ups are booming - and investors are listening very closely

by | Apr 8, 2025 | Know-How

A few years ago, artificial intelligence was just a buzzword. Today, it has become an integral part of everyday business life, especially in the start-up environment. The development is clearly recognisable: AI-based business models are now among the most sought-after innovations on the market - and are at the top of investors' agendas. But why is that?

What is Parkinson’s Law?

by | Apr 4, 2025 | Glossary entry

Parkinson's Law states that work will take as long as the time available to complete it. In other words: the more time is scheduled for a task, the longer it will take, even if the workload does not necessarily increase. This law illustrates how inefficient work processes often become if no clear time limit is set.

What is the halo effect, and what significance does it have in marketing?

by | Apr 4, 2025 | Glossary entry

The halo effect describes a cognitive distortion in which a single positive characteristic of a person or product leads to other, less obvious characteristics also being perceived as positive. This effect can play a role both in everyday life and in marketing, for example by outshining the overall impression of a company or brand through a positive perception of a single characteristic.