# Jim Blasingame ## Beware of the Concorde Fallacy Blasingame, J. (2011) ’Beware Of The Concorde Fallacy’, Available at: [LINK](https://www.forbes.com/sites/jimblasingame/2011/09/15/beware-of-the-concorde-fallacy/?sh=5ea52ea54e22) ### Notes - Concorde Fallacy - Any decision going forward should not be based on what has happened in the past - pride prevents us from giving up on something %% ## Highlights ### [[Concorde Fallacy]] > In 1956, the Supersonic Transport Aircraft Committee met in England to discuss building a supersonic airliner by British aircraft and engine manufacturers and the government. The project – named Concorde – moved forward, and in 1962 France joined the group. ([View Highlight](https://read.readwise.io/read/01gm8n854qghpsxpc2trxqfy9q)) ^kfx55 > When the wheels came up on the first Concorde commercial flight in January 1976, the enterprise was already plagued by prohibitive cost overruns. By the last Concorde flight in 2003, the Anglo/French financial misadventure had become legendary. The good news is it produced a handy metaphor that covers valuable business lessons. ([View Highlight](https://read.readwise.io/read/01gm8n8qsqj4nwv4qtkr6mdy9b)) ^jzj4y > Evolutionary biologists coined the term, “Concorde Fallacy,” as a metaphor for when animals or humans defend an investment – a policy, business, or nest – when that defense costs more than abandonment and an alternative ([View Highlight](https://read.readwise.io/read/01gm8n992a1m4r5htj5qjz2xna)) ^pljca ### [[any decision going forward should not be based on what has happened in the past]] > The “sunk costs” lesson. When the financial viability of an enterprise is questionable going forward, any decision to continue should not be based on what has already been spent. The Concorde partners learned this lesson 27 years, and lots of taxpayer money, too late. ^bbv5u - “I’ve got too much invested …” - “If I just work harder …” - “I just need more time ...” And maybe this is not just about money and business. But also about other things too. Obviously we want to learn lessons but we cannot base a 'perceived' future on our past. Like falling in love again after a bad relationship. ### [[Emotional attachment prevents us from letting go]] & [[pride prevents us from giving up on something]] > The “Pride goeth before destruction” lesson (Proverbs 16:18). Emotional attachment to Concorde, and sovereign pride of the English and French governments, caused the willing suspension of economic reason. In small business, pride can be a productive motivator – but it can also be the problem ([View Highlight](https://read.readwise.io/read/01gm8nb0w3sz0qhjz4k0gsrpax)) ^1qvrf