Sunk-Cost Effects on Purely Behavioral Investments

  title={Sunk-Cost Effects on Purely Behavioral Investments},
  author={Marcus Cunha and Fabio Caldieraro},
  journal={Cognitive science},
  volume={33 1},
Although the sunk-cost effect is a well-documented psychological phenomenon in monetary investments, existing literature investigating behavioral investments (e.g., time, effort) has not replicated this effect except when such investments relate to monetary values. The current explanation for this discrepancy proposes that purely behavioral sunk-cost effects are unlikely to be observed because they are difficult to book, track, and balance in a mental account. Conversely, we argue that, through… CONTINUE READING