What it is
Taking bigger risks with money that was won or windfall, as though it were not "really" yours.
Example Betting recklessly after an early win.
Related
Appears in
References
- Wikipedia: House-money effect en.wikipedia.org
- The 99 thinking errors in Rolf Dobelli's The Art of Thinking Clearly en.wikipedia.org
- Wikipedia: List of cognitive biases en.wikipedia.org
- Wikipedia: Cognitive bias codex en.wikipedia.org
More in “Deciding and acting: incentives, loss and commitment”
Overconfidence effectLoss aversionSunk-cost fallacyCognitive dissonanceMotivated reasoningIncentive super-response tendencyStatus quo biasEndowment effectOptimism biasPlanning fallacyOutcome biasHyperbolic discountingScarcity errorAffect heuristicAction biasOmission biasDefault effectFear of regretAmbiguity aversionParadox of choiceDecision fatigueProcrastinationHedonic treadmillMental accountingEffort justificationIllusion of controlWinner's curseMotivation crowdingNeomaniaNot-invented-here syndromeInability to close doorsOverthinkingStrategic misrepresentationDéformation professionnelleZeigarnik effectIllusion of skillDomain dependenceBeginner's luckSleeper effect"Get worse before it gets better" fallacyVolunteer's folly