Abstract

This paper presents a novel theoretical framework connecting the sunk cost fallacy, ego, and uncertainty as a dynamic interplay within emergent systems. Drawing from the principles of Chiral Dynamics of Emergent Systems (CODES), the theory posits that the sunk cost fallacy is a manifestation of ego’s response to uncertainty, creating a self-reinforcing loop. This framework resolves traditional gaps in behavioral economics, psychology, and philosophy, offering a robust lens to analyze decision-making and consciousness. The paper includes examples, mathematical approximations, and philosophical reflections to argue that this model not only redefines the sunk cost fallacy but also contributes to resolving broader philosophical paradoxes, such as determinism versus free will and Zeno’s paradox.