Sunk Cost and Reputation Effect

Sunku Hahn
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Sunku Hahn: school of economics, Yonsei University

No 2012rwp-52, Working papers from Yonsei University, Yonsei Economics Research Institute

Abstract: 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.

Keywords: sunk cost; reputation (search for similar items in EconPapers)
JEL-codes: D8 (search for similar items in EconPapers)
Pages: 11pages
Date: 2012-11-15
New Economics Papers: this item is included in nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:yon:wpaper:2012rwp-52

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