Advanced Search
MyIDEAS: Login to save this article or follow this journal

Sunk Costs Effect: Does Theoretical Knowledge Affects Students’ Decision Process?

Contents:

Author Info

  • Suliani Rover

    (University of São Paulo)

  • Artur Filipe Ewald Wuerges

    (Federal University of Santa Catarina)

  • Eduardo Cardeal Tomazzia

    (Federal University of Santa Catarina)

  • José Alonso Borba

    (Federal University of Santa Catarina)

Registered author(s):

    Abstract

    The sunk cost is defined as a greater disposition to continue an endeavor, once an investment in money, effort or time has been made. According to economic theory, however, these past expenses should not be taken into consideration, as they cannot be recovered. The objective of this study is to investigate if the student from undergraduate courses in the area of business is less susceptible to the sunk costs effect than students from other areas. Five hundred and twenty eight questionnaires were applied on students of nine undergraduate courses of three universities of Santa Catarina. The results confirm the relevance of the cognitive bias caused by sunk costs, as they indicate a lower probability of choosing the right answer when these involve sunk costs in the decisions. The assumption that the students from the business area are less affected by this bias was not confirmed.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.bbronline.com.br/public/edicoes/6_3/artigos/lhicgolmff6122010163907.pdf
    File Function: Full text
    Download Restriction: no

    Bibliographic Info

    Article provided by Fucape Business School in its journal Brazilian Business Review.

    Volume (Year): 6 (2009)
    Issue (Month): 3 (September)
    Pages: 232-248

    as in new window
    Handle: RePEc:bbz:fcpbbr:v:6:y:2009:i:3:p:232-248

    Contact details of provider:
    Postal: Fucape Business School Brazilian Business Review Av. Fernando Ferrari, 1358, Boa Vista CEP 29075-505 Vitória-ES
    Phone: +55 27 4009-4423
    Fax: +55 27 4009-4422
    Web page: http://www.bbronline.com.br/
    More information through EDIRC

    Related research

    Keywords: Sunk costs; decision process; behavioral finance.;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bbz:fcpbbr:v:6:y:2009:i:3:p:232-248. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sarah Lasso).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.