Abstract
If there is one fixed star in the firmament of economic science, it is the principle that sunk costs are just that, sunk.1 Vorbei ist vorbei; reden wir nicht mehr davon. 2 Or in the words of plain English taught to generations of American college students: “One of the most important lessons of economics is that you should look at the marginal costs and marginal benefits of decisions and ignore past or sunk costs.”3
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Chen, J.M. (2016). Mental Accounting, Emotional Hierarchies, and Behavioral Heuristics. In: Finance and the Behavioral Prospect. Quantitative Perspectives on Behavioral Economics and Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-32711-2_2
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DOI: https://doi.org/10.1007/978-3-319-32711-2_2
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-32710-5
Online ISBN: 978-3-319-32711-2
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