Sunk Cost and Reputation Effect
AbstractMany 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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Bibliographic InfoPaper provided by Yonsei University, Yonsei Economics Research Institute in its series Working papers with number 2012rwp-52.
Date of creation: 15 Nov 2012
Date of revision:
sunk cost; reputation;
Find related papers by JEL classification:
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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