PsychologyConsciousness RaisingActive LearningAudience Response SystemsEconomics and business students are taught that sunk costs are irrelevant to their decisions. Yet, there is ample evidence that managers fail to integrate this simple rule and fall prey to what is known as the sunk-costs bias. To...
ORGANIZATIONAL BEHAVIOR AND HUMAN DECISION PROCESSES 35, 124-140(1985) The Psychology of Sunk Cost The sunk cost effect is manifested in a greater tendency to continue an endeavor once an investment in money, effort, or time has been made. Evi-dence that... Hal R. Arkes,Catherine Blumer ...
The Sunk Cost Fallacy: Stanford Scientists Reveal Why We Value Things More When They Cost Us More New research delves into the psychology of sunk costs, showing how dopamine release in the brain reinforces our tendency to overvalue things we’ve heavily invested in, leading to irrat...
More about the sunk cost fallacy onthis website. Find thelatest researchon the sunk cost fallacy. Watch videoson the sunk cost fallacy. References Arkes, H. R., & Blumer, C. (1985), The psychology of sunk costs.Organizational Behavior and Human Decision Processes, 35,124-140. ...
Arkes H, Blumer C (1985) The psychology of sunk cost. Organ Behav Hum Decis 35:124–140 Article Google Scholar Charnov EL (1973) Optimal foraging: some theoretical explorations. PhD thesis, University of Washington Charnov EL (1976) Optimal foraging: the marginal value theorem. Theor Popul...
Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost.Organizational Behavior and Human Decision Processes,35, 124–140. ArticleGoogle Scholar Arkes, H. R., Joyner, C. A., Pezzo, M. V., Nash, J. G., Siegel-Jacobs, K., & Stone, E. (1994). The psychology of wind...
The psychology of sunk cost. Organ Behav Hum Dec. 1985;35:124–140. 3. Brockner J. The escalation of commitment to a failing course of action: toward theoretical progress. Acad Manage Rev. 1992;17:39–61. 4. Sharp DJ, Salter SB. Project escalation and sunk costs: a test of the ...
The psychology of sunk cost Organizational Behavior and Human Decision Processes (1985) J.Borlandet al. Escalation effects and the player draft in the AFL Labour Economics (2011) C.F.Camereret al. The econometrics and behavioral economics of escalation of commitment: A re-examination of Staw and...
Because people are willing to pay more money for brands they perceive as higher quality, you can also get a big benefit out of the sunk cost effect. When consumers pay the higher price for your goods, they will become convinced they’re better than others of a lower price. ...
Giving according to GARP: An experimental test of the consistency of preferences for altruism Econometrica, 70 (2) (2002), pp. 737-753 CrossrefView in ScopusGoogle Scholar Arkes and Blumer, 1985 H.R. Arkes, C. Blumer The psychology of sunk cost Organ. Behav. Hum. Decis. Process., 35 ...