Research Article

Sunk Cost Effect: Being a Prisoner of Past Decisions

Volume: 4 Number: 1 June 30, 2020
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Sunk Cost Effect: Being a Prisoner of Past Decisions

Abstract

If the conditions have changed, changing the decision may increase future benefit. However, people allow the influence of current decisions from previous investments. This is described as sunk costs. The aim of this study is to explain the sunk cost effect. Two hundred ninety-four managers working in the public/private sectors were reached by easy sampling. Participants were asked about three hypothetical scenario. Chi-square and correlation analyze were used in the analyzes. In Scenario 1, 64% of the participants made a rational decision and chose the Bodrum Holiday. In Scenario 2 and 3, the participants were observed to be affected by the sunk-cost effect. In the case of a high level of investment, 91.8% of the participants decided to continue the project by sunk cost effect while in the case of low-level investment 46% of the participants decided to stop the investment. In addition, the intention to avoid wasting resources was found to be effective in the sunk cost effect.

Keywords

References

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  8. Emich, K. J., & Pyone, J. S. (2018). Let It Go: Positive Affect Attenuates Sunk Cost Bias by Enchancing Cognitive Flexibility. Journal of Consumer Psychology, 28(4), s. 578-596. doi:10.1002/jcpy.1030

Details

Primary Language

English

Subjects

Business Administration

Journal Section

Research Article

Publication Date

June 30, 2020

Submission Date

January 7, 2020

Acceptance Date

March 28, 2020

Published in Issue

Year 2020 Volume: 4 Number: 1

APA
Bayramoğlu, G. (2020). Sunk Cost Effect: Being a Prisoner of Past Decisions. Econder Uluslararası Akademik Dergi, 4(1), 72-93. https://doi.org/10.35342/econder.671750
AMA
1.Bayramoğlu G. Sunk Cost Effect: Being a Prisoner of Past Decisions. Econder. 2020;4(1):72-93. doi:10.35342/econder.671750
Chicago
Bayramoğlu, Gökben. 2020. “Sunk Cost Effect: Being a Prisoner of Past Decisions”. Econder Uluslararası Akademik Dergi 4 (1): 72-93. https://doi.org/10.35342/econder.671750.
EndNote
Bayramoğlu G (June 1, 2020) Sunk Cost Effect: Being a Prisoner of Past Decisions. Econder Uluslararası Akademik Dergi 4 1 72–93.
IEEE
[1]G. Bayramoğlu, “Sunk Cost Effect: Being a Prisoner of Past Decisions”, Econder, vol. 4, no. 1, pp. 72–93, June 2020, doi: 10.35342/econder.671750.
ISNAD
Bayramoğlu, Gökben. “Sunk Cost Effect: Being a Prisoner of Past Decisions”. Econder Uluslararası Akademik Dergi 4/1 (June 1, 2020): 72-93. https://doi.org/10.35342/econder.671750.
JAMA
1.Bayramoğlu G. Sunk Cost Effect: Being a Prisoner of Past Decisions. Econder. 2020;4:72–93.
MLA
Bayramoğlu, Gökben. “Sunk Cost Effect: Being a Prisoner of Past Decisions”. Econder Uluslararası Akademik Dergi, vol. 4, no. 1, June 2020, pp. 72-93, doi:10.35342/econder.671750.
Vancouver
1.Gökben Bayramoğlu. Sunk Cost Effect: Being a Prisoner of Past Decisions. Econder. 2020 Jun. 1;4(1):72-93. doi:10.35342/econder.671750

Econder International Academic Journal is  an international, peer-reviewed multidisciplinary journal dedicated to publishing scholarly articles on all aspects of Economy and Business. Available online and published two times a year, the journal aims to become one of the leading platforms in the world for new findings and discussions of all fields of Economy and Business.


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