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Bonn1997
Posts: 58654 Alba Posts: 2 Joined: 2/2/2004 Member: #581 USA |
http://en.wikipedia.org/wiki/Sunk_cost
Traditional economics proposes that an economic actor does not let sunk costs influence one's decisions, because doing so would not be rationally assessing a decision exclusively on its own merits...Behavioral economics proposes the opposite: that sunk costs greatly affect actors' decisions, because humans are inherently loss aversive and thus normally act irrationally when making economic decisions. |
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Bonn1997
Posts: 58654 Alba Posts: 2 Joined: 2/2/2004 Member: #581 USA |
Who voted for the 1st option? Was that just someone being sarcastic?
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arkrud
Posts: 32217 Alba Posts: 7 Joined: 8/31/2005 Member: #995 USA |
Posted by Bonn1997:WOW!!! What did he say? "There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy." Hamlet
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McK1
Posts: 26527 Alba Posts: 0 Joined: 7/16/2005 Member: #964 |
Posted by arkrud:Posted by Bonn1997:WOW!!! What did he say? don't worry arkrud. they made a movie with bonn's depiction in it so we all can better understand where he comes from. he comes in at the 1:00 mark with a stale blue v-neck, bang, and pony tail. Watch with delight as Matt Damon totally owns the bonn based character called Clark in this classic film. the stop underrating David Lee movement
1. FIRE MIKE 2. HIRE MULLIN 3. PAY AVERY 4. FREE NATE!!!
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SupremeCommander
Posts: 34071 Alba Posts: 35 Joined: 4/28/2006 Member: #1127 |
Posted by McK1:Posted by arkrud:Posted by Bonn1997:WOW!!! What did he say? I love that scene. Not what Bonn is talking about, but love it nonetheless What Bonn is saying is that the cost of the trade was a first round pick and you can't go back in time to undo the trade. Hence, sunk cost. However--the cost that was paid tend to influence the way people approach a situation. For example, the consensus on this board is that the Dallas Mavericks are overpaying to keep Jason Kidd and are doing so because of the sunk cost Mark Cuban paid to acquire Kidd. So people tend to interpret sunk costs as variable costs on a behavioral level. Another example would be poker. Let's say I bluff and someone re-raises. Well, just because I put money in the middle of the table has no bearing on how I should proceed. But, **** it man. I already put $267 dollars into that pot, I'm going to go all in DLeethal wrote:
Lol Rick needs a safe space
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