B.E. For Dogs: Sunk Cost
B.E. for Dogs is a bi-weekly comic series that will examine concepts in behavioral economics from the perspective of our canine companions. Look out for new comics every other week!
Sunk Cost: Have you ever continued with a project you knew would fail, simply because you put a lot of initial effort into it? Or held on to a losing investment for too long? The sunk cost effect describes our tendency to persist with something simply because we’ve invested a lot of money, time, or energy. Check out this classic paper by Hal R. Arkes and Catherine Blumer to learn more!