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Sunk costs - Wikipedia, the free encyclopedia
In economics and business decision-making, sunk costs are retrospective (past) costs which have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective co...
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Sunk cost dilemma - Wikipedia, the free encyclopedia
A sunk cost dilemma is a dilemma of having to choose between continuing a project of uncertain prospects already involving considerable sunk costs, or discontinuing the project. Given this choice be...
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The cost of finding what you want. The economic cost of buying something is not simply the PRICE you pay. Finding what you want and ensuring that it is competitively priced can be expensive, be it the financial cost of physically getting to a marketplace or the OPPORTUNITY COST of time spent fact-finding.
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Some Thoughts on the Sunk Cost Fallacy 50comments ... What about that $1 sunk cost at Target? Well, it was already sunk. All it did was give him a choice – pay $58.99 for the game at Target, or pay $59.99 for the game plus a $10 gift card at Best Buy. He chose the latter because the cost was sunk either way.
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In any business decision process, including an IT related one, sunk costs can sink a business. In short, a sunk cost is an expenditure made in the past that can't be changed now or in the future. Most expenditures are sunk costs unless, for example, you purchase product that is fully refundable if you return it.
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Arkes, H. R., & Ayton, P. (1999). The sunk cost and Concorde effects: Are humans less rational than lower animals? Psychological Bulletin, 125, 591-600. ... The Sunk-Cost Fallacy - Bush falls victim to a bad new argument for the Iraq war. By Barry Schwartz...
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