The Sunk-Cost Fallacy in the National Football League

@article{Keefer2017TheSF,
  title={The Sunk-Cost Fallacy in the National Football League},
  author={Quinn A. W. Keefer},
  journal={Journal of Sports Economics},
  year={2017},
  volume={18},
  pages={282 - 297}
}
The National Football League (NFL) draft is used to examine the presence of the sunk-cost fallacy in teams’ playing time decisions. In the NFL, salary cap value represents a significant sunk cost to teams. We use the structure of the NFL draft to conduct a fuzzy regression discontinuity design. Optimal bandwidth local linear results suggest a 10% increase in salary cap value yields an additional 2.7 games started, for players selected near the cutoff between the first two rounds. Despite being… 

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