Thursday, August 23rd, 2007
At a bar, I once saw three people at a table receive separate checks, and amazingly, each of them paid in a different method. The first person threw down cash, the second a debit card, and the third a credit card. It got me thinking about why people pay in ...
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Wednesday, August 22nd, 2007
A sunk cost is an expense that you cannot recover. Accordingly, economic theory says a sunk cost should not affect your decision making. Psychologically, it is hard to ignore sunk costs. Here are a few examples where sunk costs come into play.
Example 1: Attending an NFL game with already purchased ...
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