What Is Effort Justification In Behavioral Economics?

Effort justification is a psychological phenomenon in which people rationalize their efforts or sacrifices by increasing their liking for the activity or object they have invested in. This can happen when people have put a lot of time, energy, or resources into something, and they feel a need to justify their investment by convincing themselves that the activity or object is more valuable or worthwhile than they initially thought. For example, if you spend a lot of time and money on a difficult hobby, you may find yourself becoming more passionate and committed to that hobby, even if it is not objectively better or more enjoyable than other activities. Effort justification can lead to irrational behavior and decision-making, as people may continue to invest in something even if it is not in their best interest. To avoid effort justification, it is important to carefully evaluate the costs and benefits of an activity or object and to make decisions based on objective criteria rather than on the amount of effort we have invested in it.

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