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On the Observability of Purely Behavioral Sunk‐Cost Effects: Theoretical and Empirical Support for the BISC Model
Author(s) -
Cunha Marcus,
Caldieraro Fabio
Publication year - 2010
Publication title -
cognitive science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.498
H-Index - 114
eISSN - 1551-6709
pISSN - 0364-0213
DOI - 10.1111/j.1551-6709.2010.01143.x
Subject(s) - observability , sunk costs , computer science , psychology , cognitive psychology , microeconomics , economics , mathematics
Abstract There is growing interest in whether and how sunk‐cost effects for purely behavioral investments occur. In this article, we further discuss Cunha and Caldieraro’s (2009) Behavioral Investment Sunk Cost (BISC) model and reconcile Otto’s (2010) results with the BISC model predictions. We also report new data from two unpublished experiments that are consistent with the BISC model, and we discuss the conditions under which purely behavioral sunk‐cost effects are likely to be observed.