Searching for the sunk cost fallacy

By Daniel Friedman, K. Pommerenke, Rajan M. Lukose, Garrett Milam, Bernardo A. Huberman. 2007

169 citations recorded by the source corpus.

Subfields: Applied Psychology, General Decision Sciences, Safety Research

View Paper: https://www.semanticscholar.org/paper/4578ed98749fc6c283fb6208027981afcc49ba6d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Applied Psychology

1. Roman M. Sheremeta

In General Decision Sciences

1. J. O’Brien
2. Roman M. Sheremeta
3. Timothy B. Folta
4. Jesse M. Shapiro
5. James Berry
6. Nava Ashraf
7. Subhasish M. Chowdhury
8. Abhijit Banerjee

In Safety Research

1. Roman M. Sheremeta
2. Nava Ashraf
3. Dan Kovenock
4. Emmanuel Dechenaux
5. Subhasish M. Chowdhury
6. Shakun D. Mago
7. Abhijit Banerjee
8. B. K. Jack

Citations in the corpus

• Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia (2010, background): “While evidence from hypothetical choices supports the sunk-cost premise (Thaler 1980; Arkes and Blumer 1985), evidence from incentivized laboratory behaviors is more mixed (Daniel Friedman et al. 2007). 7 A number of existing papers explore the special role of zero prices, but none focuses on the ef”
• DO SUNK COSTS MATTER (2010, unknown): “Friedman et al. (2006) list option values and reputational concerns as possible reasons why people might react to sunk costs.”
• Sunk Costs, Uncertainty and Market Exit: A Real Options Perspective (2009, background): “…evidence that people consider sunk costs when making an abandonment decision as evidence of biased decision-making (Staw, 1981; Ross and Staw, 1993), and responded by devoting considerable class time and textbook pages to teaching business students to ignore sunk costs (Friedman et al., 2007).”
• Experimental comparison of multi-stage and one-stage contests (2009, background): “However, there is some evidence that economic agents fall prey to a sunk cost fallacy (Arkes and Blumer, 1985; Meyer, 1993; Friedman et al., 2007).”
• Fight or Flight? (2012, unknown): “…are sunk costs and should be ignored, but evidence from various behavioral studies suggests people incorporate sunk costs in their decision making (Friedman et al. 2007).17 Several other possible explanations, proposed in the literature, include subjects having a nonmonetary value of winning…”