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Sunk Cost and Reputation Effect

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Author Info

  • Sunku Hahn

    (school of economics, Yonsei University)

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    Abstract

    Many people are not free from past sunk costs in their decision making processes, even though economic theory tells them to forget the sunk costs. In this paper we will show that it can be a rational behavior for the people not to forget the sunk cost when people are concerned with their future reputations.

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    File URL: ftp://repec.yonsei.ac.kr/repec/yon/wpaper/2012rwp-52.pdf
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    Bibliographic Info

    Paper provided by Yonsei University, Yonsei Economics Research Institute in its series Working papers with number 2012rwp-52.

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    Length: 11pages
    Date of creation: 15 Nov 2012
    Date of revision:
    Handle: RePEc:yon:wpaper:2012rwp-52

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    Related research

    Keywords: sunk cost; reputation;

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