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This paper provides an explanation for why the sunk cost bias persists among firms in a competitive environment in which rich learning possibilities are allowed. We envision firms that experiment with cost methodologies that are consistent with real-world accounting practices, including ones...
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This paper provides an explanation for why the sunk cost bias persists among firms competing in a differentiated product oligopoly. Firms experiment with cost methodologies that are consistent with real-world accounting practices, including ones that allocate fixed and sunk costs to determine...
Persistent link: https://www.econbiz.de/10014061834