Mental Accounting, Emotional Hierarchies, and Behavioral Heuristics

James Ming Chen
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James Ming Chen: Michigan State University

Chapter Chapter 2 in Finance and the Behavioral Prospect, 2016, pp 29-56 from Palgrave Macmillan

Abstract: Abstract If there is one fixed star in the firmament of economic science, it is the principle that sunk costs are just that, sunk.1 Vorbei ist vorbei; reden wir nicht mehr davon. 2 Or in the words of plain English taught to generations of American college students: “One of the most important lessons of economics is that you should look at the marginal costs and marginal benefits of decisions and ignore past or sunk costs.”3

Keywords: Corporate Social Responsibility; Ecosystem Service; Supra Note; Mutual Fund; Initial Public Offering (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:pal:qpochp:978-3-319-32711-2_2

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DOI: 10.1007/978-3-319-32711-2_2

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