INST 354 Lecture Notes - Lecture 15: Jim Sasser, Sunk Costs, Tombigbee River
10 Feb 2019
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When we behave as if our nonrefundable expense is equivalent to a current investment, we are honoring a sunk cost. The diagram shows that at the decision point, the only choice available that avoids the contradictions specified earlier is the one you judge to be the more valuable turning back. The information presented in the examples in this book is to be taken as the total information available to the decision maker. Naturally, if there is other information, or if there are other reasons for engaging in a behavior that are not specified in the examples, then the choices might be different. ) People honor sunk costs, as the examples below illustrate: Too much money"s been spent, too many troops are over here, too many people had too many hard times not to kick somebody"s ass. (sergeant robby felton on the first day of the first gulf. War, january 16, 1991; and a more general remark attributed to proponents of continuing.
