Sunk Costs

Abstract

Decision theorists generally object to “honoring sunk costs” – that is, treating the fact that some cost has been incurred in the past as a reason for action, apart from the consideration of expected consequences. This paper critiques the doctrine that sunk costs should never be honored on three levels. As background, the rationale for the doctrine is explained. Then it is shown that if it is always irrational to honor sunk costs, then other common and uncontroversial practices are also irrational. Second, it is argued that there is no satisfactory way to make a distinction between the two kinds of cases. Third, a proposal is developed which would explain how it could be rational, under certain circumstances, to honor sunk costs.

Links

PhilArchive

External links

  • This entry has no external links. Add one.
Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

  • Only published works are available at libraries.

Analytics

Added to PP
2009-12-08

Downloads
145 (#119,570)

6 months
60 (#63,726)

Historical graph of downloads
How can I increase my downloads?

Author's Profile

Robert Bass
University of North Carolina at Pembroke

Citations of this work

No citations found.

Add more citations

References found in this work

No references found.

Add more references