Anexample of sunk cost bias is when an individual works from differentareas and decides to rent a house at the different areas. However,with time, the work might be more in one area and as such, forcingthe individual to almost reside there. However, the good condition ofthe rental house in the other area, and probably being the placewhere the individual spends the weekend, they may be tempted tocontinue paying for both houses. However, the rentals paid for one ofthe houses are uneconomical since very little or no time is spentthere within the month. Probably, one of the houses has been retainedfor prestige purposes and poses no economic benefit to theindividual.
Thisfallacy involves misrepresenting the information provided to fitone’s argument. A good example is the case of the current situationbetween the ruling and the opposition party in Kenya. In the recentdisagreement about the existence of the electoral body, theopposition has continually called upon the government to disband theelectoral body. However, there exists a legal process and which isoutlined by the government through which the body can be dissolved,that is, through a parliamentary motion to disband it and whichshould be voted by at least two thirds of the house. However, despiteknowing very clearly that the government has no constitutionalmandate to disband the Independent Electoral and BoundariesCommission and that there exists a specific way of disbanding it, theopposition has been terming the call by the government to theopposition to take the motion to the national assembly as a meansdevised by the government to rig the next general elections.