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Daily Archive May 29th, 2006

Would you throw good money after bad?

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THE PSYCHOLOGY OF SUNK COSTS The sunk cost effect is sometimes called the Concorde fallacy Hal Arkes and Catherine Blumer asked a group of 48 people the following scenario involving sunk costs: As the president of an airline company, you have invested 10 million dollars of the company’s money into a research project. The purpose […]