Discussion Post: Sunk-Cost Fallacy
Read Mark Daoust's article, Sunk-Cost Fallacy: The Real Truth About the Value of Half-Finished Projects. Now,
o Why is the sunk-cost fallacy problematic? The key here is not to tell us what the sunk-cost fallacy is (we all know about that now) but to describe why it causes problems in business.
o Froeb, McCann, Shor, & Ward (2018) suggest that sunk costs can also be variable (rather than just fixed costs). Is this also problematic (do these also cause a problem?) Be sure that you read the text so that you understand what the variable cost version of the fixed cost fallacy represents... it may not be what you think it is!
o Provide your own example of the sunk-cost fallacy. How would you resolve your sunk-cost fallacy? Discuss this in detail. In other words, what would you do to correctly manage or deal with the sunk-cost fallacy that you have identified?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.