Anil, Arya; Hans, Frimor; Brian, Mittendorf - In: The B.E. Journal of Economic Analysis & Policy 3 (2003) 1, pp. 1-14
A common explanation for why firms incur sunk costs is that technology considerations make them inescapable. This paper shows that sometimes firms may prefer to make early (less informed) investment decisions even when technology allows such decisions to be delayed. Sunk costs commit and clarify...