Sunk Cost and Reputation Effect

Many people are not free from past sunk costs in their decision making processes, even though economic theory tells them to forget the sunk costs. In this paper we will show that it can be a rational behavior for the people not to forget the sunk cost when people are concerned with their future reputations.

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Year of publication:	2012-11-15
Authors:	Hahn, Sunku
Institutions:	Economic Research Institute, College of Business and Economics
Subject:	sunk cost \| reputation

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Extent:	application/pdf
Series:	Working papers.
Type of publication:	Book / Working Paper
Notes:	Number 2012rwp-52 11 pages longages
Classification:	D8 - Information and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011191580