A well-known implication of microeconomic theory is that sunk costs should have no effect on decision making. We test this hypothesis with a human-subjects experiment. Students recruited from graduate business courses, with an average of over six years of work experience, played the role of...

Purpose – The purpose of this paper is to investigate whether audit professionals exhibit greater performance evaluation bias compared to non‐accounting professionals. Design/methodology/approach – Both audit and non‐accounting professional subjects read a case study and evaluated the...