Which term refers to the awareness of one's investments influencing decision-making, even irrationally?

The term that refers to the awareness of one's investments influencing decision-making, even irrationally, is the sunk-cost fallacy. This cognitive bias occurs when individuals continue a behavior or endeavor based on previously invested resources (time, money, effort) rather than current and future benefits. People may feel compelled to stick with a decision or investment because they have already put so much into it, which can lead to further poor decision-making.

In this context, the sunk-cost fallacy illustrates how prior investments create a psychological barrier to cutting losses or making more rational choices. This can be seen in various situations, such as individuals continuing to watch a movie they dislike simply because they paid for the ticket or businesses pursuing unsuccessful projects because they have already invested significant resources.

Self-serving bias refers to the tendency to attribute positive outcomes to one's own actions while blaming negative outcomes on external factors, which is not specifically related to past investments in decision-making. The framing effect concerns how the presentation or context of information alters decision-making, while escalation of commitment describes a pattern of increasing commitment to a failing course of action, often fueled by sunk costs but does not specifically denote the awareness aspect emphasized in the question.