Friedman, Daniel; Pommerenke, Kai; Lukose, Rajan; … - EconWPA - 2004
We seek to isolate in the laboratory factors that encourage and discourage the sunk cost fallacy. Subjects play a computer game in which they decide whether to keep digging for treasure on an island or to sink a cost (which will turn out to be either high or low) to move to another island. The...