Ketel, Nadine; Linde, Jona; Oosterbeek, Hessel; van der … - C.E.P.R. Discussion Papers - 2014
This paper reports on a field experiment testing for sunk-cost effects in an education setting. Students signing up for … extra-curricular tutorial sessions randomly received a discount on the tuition fee. The sunk-cost effect predicts that … categorized as sunk-cost prone based on hypothetical survey questions. For them higher tuition fees can serve as a commitment …