Neutrality, Sunk Costs, and Commitment

2018 ◽  
Author(s):  
Meghan Sullivan
Keyword(s):  
Sunk Costs ◽  
Full Information ◽  
Sunk Cost ◽  
The Difference ◽  
Alternative Solutions

This chapter applies the theory of temporal neutrality to past commitments. How do we distinguish irrational sunk cost reasoning from rationally permissible honoring of past plans? The chapter provides a parallel principle to Weak Forecasting called Weak Honoring that explains the difference. Roughly, given full information, it is permissible to choose any option you have not foresworn and will never regret over any option you have foresworn or will regret. The chapter considers alternative solutions to the sunk cost puzzle drawn from Nozick (rational irrationality), Bratman and Holton (commitment), Hurka and Kelly (structuralism), and Korsgaard (integrity). It raises objections for each of these alternative accounts.

Did the 2011 Change to NFL Rookie Compensation Alter How Sunk Costs Affect Utilization?

2020 ◽  
pp. 152700252098343
Author(s):  
Quinn Andrew Wesley Keefer
Keyword(s):  
Collective Bargaining ◽  
Regression Discontinuity ◽  
Sunk Costs ◽  
Collective Bargaining Agreement ◽  
Sunk Cost ◽  
Wage Scale ◽  
The One

The 2011 NFL collective bargaining agreement introduced significant changes to rookie compensation, including a rookie wage scale. We test if the new rules changed how sunk costs affect utilization for drafted rookies. Our regression discontinuity results show a robust sunk-cost fallacy that is similar in magnitude to the one documented under the previous agreement. Second-round selections play significantly less than their first-round counterparts, as measured by percentage of games started, total snaps played, and percentage of snaps played. However, the effect is not evident beyond the rookie season. Additional results show coaching success and coaching changes are important factors.

Role of Sunk Cost in Engineering Idea Generation: An Experimental Investigation

2013 ◽  
Vol 135 (12) ◽  
Author(s):  
Vimal K. Viswanathan ◽  
Julie S. Linsey
Keyword(s):  
Mental Models ◽  
Design Process ◽  
Sunk Costs ◽  
Process Models ◽  
Physical Models ◽  
Controlled Study ◽  
Time Cost ◽  
Sunk Cost ◽  
Sunk Cost Effect ◽  
Cost Effect

Researchers and design practitioners advocate building physical models of ideas at early stages of the design process. Still, the cognitive effects of physical models remain largely unknown. Some studies show that physical models possess the potential to facilitate the generation of high quality ideas. Conversely, other studies demonstrate that physical models can lead to design fixation. A prior controlled study by the authors failed to detect fixation due to early stage physical models. Based upon these conflicting results, this study hypothesizes that the fixation observed in prior studies can be explained by the Sunk Cost Effect. The Sunk Cost Effect pertains to an individual's reluctance to choose a different path of action once he/she invests a significant cost (money, time, or effort). According to this theory, as designers spend more time, money or effort in building physical models, they tend to generate ideas with lower novelty and variety. The prior observational studies use complicated design problems with higher costs compared to the controlled study, possibly explaining the difference in results. This study also hypothesizes that physical models supplement designers' erroneous mental models. The authors investigate these hypotheses through a controlled, between-subject experiment with five conditions: Sketching Only, Metal Building (low time cost), Plastic Building (high time cost), Metal Constrained Sketching, and Plastic Constrained Sketching. In each condition, subjects construct their ideas using materials specified by the name of the condition. The constrained sketching conditions assist in determining if participants tend to limit their ideas to only ones that can be built with given materials even though they are instructed to write down all ideas. The results confirm that the sunk cost of building plays a vital role in the observed fixation; thus, physical models do not inherently cause fixation. Moreover, results also show that physical models supplement designers' erroneous mental models, leading to higher quality ideas. To minimize sunk costs very early in the design process, models should be built with materials requiring minimal time, cost, and effort for the designers.

scholarly journals Are SMR a Reasonable Choice for Switzerland? An Application of the INCAS Model

2011 ◽  
Author(s):  
Sara Boarin ◽  
Giorgio Locatelli ◽  
Mauro Mancini ◽  
Marco E. Ricotti
Keyword(s):  
Energy Policy ◽  
Nuclear Power ◽  
Net Present Value ◽  
Stochastic Approach ◽  
Financial Economic ◽  
Sunk Costs ◽  
Unbiased Estimation ◽  
Parliamentary Debate ◽  
The Difference ◽  
Safety Features

Small countries can represent a suitable market for Small Medium Reactors (SMR). Among them Switzerland is one the more interesting since already hosts five commercial nuclear reactors; three of them are SMR (about 370 MWe) and two are large units (985 and 1165 MWe). Since the oldest units are about 40 year-old the Swiss utilities wereplanning to replace them while adding new nuclear power capacity to the portfolio mix.. Most recently, a radical re-thinking of the country energy policy is taking place as a Fukushima accident’s aftermath. Debate is about abandoning nuclear power and replacing it with renewable new capacity and import. “Economiesuisse, the umbrella organisation for Swiss business, considers a premature abandonment of atomic energy <irresponsible>. Without valid alternatives, Economiesuisse warns, abandoning the nuclear option will have serious consequences for Swiss industry”. Also “the environmental organisationsrecognise that the discussion on energy policy — which will really heat up with the parliamentary debate in June — is not solely an ideological one. Financial and economic considerations are likely to make all the difference” (L.Jorio, “What price a future without nuclear energy?”, www.swissinfo.ch, May 17, 2011).An objective and unbiased estimation of the cost of new nuclear power is essential to Policy Makers and a focus on SMR economic potential is a further contribution to the debate. SMR advanced passive safety features may cope with public concerns about safety, which has become a priority. Polimi’s INCAS model has been developed to compare the investment in SMR respect to LR and is able to assess the financial/economic indicators arising from these two alternative investment options. In particular the INCAS model provides the value of IRR (Internal Rate of Return), NPV (Net Present Value), Upfront investment, etc. A stochastic approach to the data elaboration and the implementation of a Montecarlo analysis provide the evaluation of the investment risk profile. Results show that investment returns are comparable for LR and SMR; however SMR require a lower upfront investment, thus representing lower sunk costs and more affordable and scalable investment option than monolithic LR.

scholarly journals MUSYKIL ÂTI TA’LIM AL-LUGHAHI AL-ARABIYYATI F Î MADRASATI EAKKAPAPSASANAWICH AL-ISLAMIYYATI BITHAILAND WAKHIYÂRÂTI AL-HULULI ’ALAIHA

2019 ◽  
Vol 3 (1) ◽  
pp. 70
Author(s):  
Mukminatul Layyinah
Keyword(s):  
Concept Maps ◽  
Teaching Method ◽  
Islamic School ◽  
Teaching Aids ◽  
Qualitative Descriptive ◽  
The Media ◽  
The Difference ◽  
Media Learning ◽  
Alternative Solutions ◽  
Linguistic Problem

الملخص: هذا البحث يهدف إلى وصف المشكلات اللغوية وغير اللغوية في تعليم اللغة العربية في مدرسة "إيكافاف ساساناويج" الإسلامية بتايلاند وخيارات الحلول عليهما. يستخدم هذا البحث المنهج الوصفي الكيفي. أما نتائج هذا البحث فهي المشكلات اللغوية الموجودة في تلك المدرسة هي (1) اختلاف الأصوات العربية، و(2) اختلاف التركيب ونوع الفعل بين اللغة العربية والتايلاندية. والمشكلات غير اللغوية الموجودة في تلك المدرسة هي (1) الطريقة التعليمية المستخدمة فقط طريقة النحو والترجمة و(2) الوسائل التعليمية المستخدمة فقط الخريطة الذهنية. وخيارات حلول المشكلة اللغوية على الأصوات العربية هي تكرار الحروف العربية المختلفة باللغة التايلاندية مرات، وخيارات حلول المشكلة اللغوية على النحو هي إعطاء الأساليب الكثيرة للجملة الاسمية والجملة الفعلية وأمثلتها. أما خيارات حلول المشكلات غير اللغوية على الطريقة التعليمية فهي استخدام الطريقة التعليمية المتنوعة والمناسبة بأهداف التعليم، وأحوال الطلاب، والمواد المدروسة. وخيارات حلول المشكلات غير اللغوية على الوسائل التعليمية هي استخدام الوسائل التعليمية في عملية التعليم.الكلمات المفتاحية: مشكلات التعليم; اللغة العربية; المشكلات اللغوية; المشكلات غير اللغوية; مدرسة "إيكافاف ساساناويج" الإسلامية بتايلاندAbstract: This research aims to describe the linguistic and non-linguistic problems of Arabic teaching at the "Eakkapapsasanawich” islamic school Thailand and the options for solutions. This research uses qualitative descriptive methodology. The results of this research are the linguistic problems in this school are (1) the difference in the Arabic voices, and (2) the different composition and type of verb between Arabic and Thai. The non-linguistic problems in this school are (1) the teaching method used is only the method of nahwu and translation and (2) the media learning used is only concept maps. The alternative solutions for the linguistic problem on the Arabic voices is the repetition of Arabic letters that are different from Thailand repeatedly, and the solutions to the problem of language, is to give many patterns of the nominal sentence and the actual sentence and examples. The alternative solutions for non-linguistic problems in the teaching method are to use the varied and appropriate teaching method with the goals of education, the conditions of the students and the studied materials. The alternative solutions for non-linguistic problems on teaching aids are to use teaching aids in the teaching process.Keywords: teaching problems, rabic language, linguistic problems, non-linguistic problems, Eakkapapsasanawich islamic school..Abstrak: Penelitian ini bertujuan untuk mendeskripsikan problematika linguistik dan non-linguistik dalam pembelajaran bahasa Arab di sekolah islam “Eakkapapsasanawich” Thailand dan alternatif solusinya. Penelitian ini menggunakan metode deskriptif kualitatif. Hasil penelitian ini adalah problematika linguistik yang ada di sekolah ini adalah (1) perbedaan dalam fonologi, dan (2) perbedaan susunan kalimat dan jenis kata kerja antara bahasa Arab dan Thailand. Problematika non-linguistik di sekolah ini adalah (1) metode pembelajaran yang digunakan hanya metode nahwu dan tarjamah dan (2) media pembelajaran yang digunakan hanya peta konsep. Alternatif solusi untuk problematika linguistik pada fonologi adalah dengan pengulangan huruf Arab yang berbeda dengan Thailand berulangkali, dan solusi untuk problematika nahwu adalah dengan memberikan banyak pola kalimat serta contohnya. Alternatif solusi untuk problematika non-linguistik metode pembelajaran adalah dengan menggunakan metode pembelajaran  yang bervariasi dan sesuai dengan tujuan pendidikan, kondisi siswa dan materi yang dipelajari. Alternatif solusi untuk problematika non-linguistik pada media pembelajaran adalah dengan menggunakan media pengajaran dalam proses pengajaran.Kata kunci: problematika pembelajaran, bahasa Arab, problematika linguistik, problematika non-linguistik, sekolah islam “Eakkapapsasanawich” Thailand.

scholarly journals Capuchin and rhesus monkeys show sunk cost effects in a psychomotor task

2020 ◽  
Author(s):  
Julia Watzek ◽  
Sarah Brosnan
Keyword(s):  
Rhesus Monkeys ◽  
Rhesus Macaques ◽  
Sunk Costs ◽  
Comparative Approach ◽  
Moving Target ◽  
Costs And Benefits ◽  
Sunk Cost ◽  
Psychological Mechanisms ◽  
Human Decision ◽  
Cost Effect

Human decision-making is often swayed by irrecoverable investments even though it should only be based on future – and not past – costs and benefits. Although this sunk cost effect is widely documented and can lead to devastating losses, the underlying psychological mechanisms are unclear. To tease apart possible explanations through a comparative approach, we assessed capuchin and rhesus monkeys’ susceptibility to sunk costs in a psychomotor task. Monkeys needed to track a moving target with a joystick-controlled cursor for variable durations. They could stop at any time, ending the trial without reward. To minimize the work required for a reward, monkeys should have always persisted for at least 1 second, but should have abandoned the trial if that did not yield a reward. Capuchin monkeys and especially rhesus macaques persisted to trial completion even when it was suboptimal, and were more likely to complete the trial the longer they had already tracked the target. These effects were less pronounced, although still present, when the change in expected tracking duration was signalled visually. These results show that sunk cost effects can arise in the absence of human-unique factors and may emerge, in part, because persisting can resolve uncertainty.

scholarly journals Capuchin and rhesus monkeys show sunk cost effects in a psychomotor task

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Julia Watzek ◽  
Sarah F. Brosnan
Keyword(s):  
Rhesus Monkeys ◽  
Rhesus Macaques ◽  
Sunk Costs ◽  
Comparative Approach ◽  
Moving Target ◽  
Costs And Benefits ◽  
Sunk Cost ◽  
Psychological Mechanisms ◽  
Human Decision ◽  
Cost Effect

AbstractHuman decision-making is often swayed by irrecoverable investments even though it should only be based on future—and not past—costs and benefits. Although this sunk cost effect is widely documented and can lead to devastating losses, the underlying psychological mechanisms are unclear. To tease apart possible explanations through a comparative approach, we assessed capuchin and rhesus monkeys’ susceptibility to sunk costs in a psychomotor task. Monkeys needed to track a moving target with a joystick-controlled cursor for variable durations. They could stop at any time, ending the trial without reward. To minimize the work required for a reward, monkeys should have always persisted for at least 1 s, but should have abandoned the trial if that did not yield a reward. Capuchin monkeys and especially rhesus macaques persisted to trial completion even when it was suboptimal, and were more likely to complete the trial the longer they had already tracked the target. These effects were less pronounced, although still present, when the change in expected tracking duration was signalled visually. These results show that sunk cost effects can arise in the absence of human-unique factors and may emerge, in part, because persisting can resolve uncertainty.

scholarly journals The Role of Sunk Cost and Slack Resources in Innovation: A Conceptual Reading in an Entrepreneurial Perspective

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Salvatore Esposito De Falco ◽  
Antonio Renzi
Keyword(s):  
Friction Factor ◽  
Sunk Costs ◽  
Innovative Activity ◽  
Sunk Cost ◽  
Slack Resources ◽  
The Relationship ◽  
Absorbed Slack

AbstractThis paper proposes a conceptual reading of the interplay between sunk costs and slack resources in innovation, adopting an entrepreneurial perspective. Antecedent literature mostly depicts the relationship between slack and innovation as an inverse u-shaped curve. However, this approach is way too unrealistic and it does not take in account both the different impact of heterogeneous types of slack and of sunk costs. We argue that not all slacks positively contribute to innovation and, hence, the u-shaped relationship is merely verified in case of highly flexible slack resources. In addition, the presence of sunk costs is a friction factor, which makes the first part of the curve less steep. Therefore, entrepreneurs are solicited to innovation by the presence of some easy recoverable slack types, as financial or knowledge ones. On the converse, a consistent level of sunk cost may discourage their innovative activity. In this setting, absorbed slack resources increase the level of sunk costs.

Concerning inorganic crystal structure types

1999 ◽  
Vol 55 (2) ◽  
pp. 147-156 ◽  
Author(s):  
G. Bergerhoff ◽  
M. Berndt ◽  
K. Brandenburg ◽  
T. Degen
Keyword(s):  
Crystal Structure ◽  
Crystal Structures ◽  
Structure Type ◽  
Inorganic Crystal Structure Database ◽  
Full Information ◽  
Structure Database ◽  
Inorganic Crystal ◽  
The Difference ◽  
Crystal Structure Database

All representatives of an inorganic crystal structure type can be found systematically in the new database SICS (Standardized Inorganic Crystal Structures). It is derived from the Inorganic Crystal Structure Database (ICSD) by selecting the best determination of each phase. In addition, each entry is given in a standardized description and complemented by searchable descriptors \Delta, which give the difference between all structures of an isopointal set. Because of the large number of structures the full information on relationships present can only be found by means of the new database itself. Some examples are given here in printed form. The limitations and the possibilities of expansion of SICS in terms of the concept of `structure types' are demonstrated.

scholarly journals Mindfulness and decision-making: Sunk-costs or escalation of commitment?

2018 ◽  
Author(s):  
Neil Schmitzer-Torbert
Keyword(s):  
Decision Making ◽  
Sunk Costs ◽  
Escalation Of Commitment ◽  
Trait Mindfulness ◽  
Sunk Cost ◽  
Positive Health ◽  
Course Of Action ◽  
Cognitive Benefits ◽  
Positive Health Outcomes ◽  
The Relationship

Mindfulness is related to a number of positive health outcomes, such as decreased stress, anxiety and improved physical functioning. Recent studies have also identified a range cognitive benefits of mindfulness, including recent studies demonstrating that higher trait mindfulness and brief mindfulness inductions are associated with improved decision-making, and specifically to resistance to the influence of sunk-costs, where higher mindfulness is associated with increased willingness to discontinue a costly, but disadvantageous, course of action. However, some previous studies examining mindfulness and the sunk-cost bias have methodological limitations which make it difficult to determine if mindfulness is specifically related to sensitivity to the sunk-cost bias, or rather than to a general willingness to continue an unprofitable course of action (independent of the level of prior investment). The present study extends previous work by replicating the finding that trait mindfulness is positively related to resistance to the effects of sunk-costs, and also demonstrates that mindfulness is related to reduced escalation of commitment, an individual’s willingness to continue their commitment to a unprofitable course of action through the further investment of resources or time. Overall, trait mindfulness was most consistently related to reduced escalation of commitment, whereas the relationship between trait mindfulness and resistance to the effects of sunk-costs were less consistently observed

Sunk costs and quasi-hyperbolic discounting: keeping profitable commitments by considering sunk costs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Brian Knox
Keyword(s):  
Educational Intervention ◽  
Numerical Experiments ◽  
Hyperbolic Discounting ◽  
Educational Interventions ◽  
Sunk Costs ◽  
Bad News ◽  
Good News ◽  
Cost Consideration ◽  
Sunk Cost ◽  
Content Type

Purpose Managerial accounting education generally insists that managers should never consider sunk costs. This suggestion seems inconsistent with a common mode of thinking about future rewards: quasi-hyperbolic discounting. This paper aims to explore the conflict between sunk cost consideration and quasi-hyperbolic discounting and to illustrate when sunk cost consideration may be appropriate. Design/methodology/approach The author conducted three numerical experiments, i.e. simulated experiments based on analytical models, to demonstrate how it can be beneficial to consider sunk costs in some circumstances. All three numerical experiments assume quasi-hyperbolic discounting. First, the author tested considering sunk costs with future rewards that are certain. Second, the author tested considering sunk costs with uncertain future rewards. Finally, the author tested two different educational interventions to change decision-makers’ thought patterns. Findings The author found that considering sunk costs worsens decisions when there is bad news and improves them when there is good news. The author found that an educational intervention that partially dissuades managers from considering sunk costs improves decisions when bad news arrives and worsens them when good news arrives. The author also found that an educational intervention that reduces uncertainty improves decisions when bad news arrives and does not worsen these decisions when good news arrives. Originality/value The author provided numerical examples of situations in which considering sunk costs is valuable. The findings on educational interventions provide information about the tradeoffs of teaching that sunk costs should never be considered.

Sign in / Sign up

Export Citation Format

Share Document