Throwing good money after bad
نویسندگان
چکیده
منابع مشابه
Throwing Good Money After Bad∗
An “investment bubble” is a period of “excessive, and predictably unprofitable, investment”(DeMarzo, Kaniel and Kremer, 2007, p.737). Such bubbles most often accompany the arrival of some new technology, such as the tech stock boom and bust of the late 1990’s and early 2000’s. We provide a rational explanation for investment bubbles based on the dynamics of learning in highly uncertain environm...
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The functional relationship between sunk costs and the decision to continue investment in a research and development (R&D) project was examined in an experiment with 407 undergraduate business students. Ss read an R&D scenario in which 10%, 30%, 50%, 70%, or 90% of a $10 million budget had been invested. One group of Ss indicated the likelihood of their allocating all remaining funds to finish ...
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The sunk cost fallacy is the tendency to continue an endeavour once an investment in money, effort, or time has been made. We studied how people’s chronic orientation to cope with failing projects (i.e., action vs. state orientation) influences the occurrence of this sunk cost effect. We found that people with a state orientation, who have a tendency to ruminate about past events and have a har...
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Intracranial bleeding is the most feared complication of thrombolytic therapy in acute stroke. The risk of brain hemorrhage is the main argument of the European authorities not to approve recombinant tissue plasminogen activator (rtPA), and the fear of hurting patients with rtPA explains its limited use in North America. The common argument is, “Treatment with rt-PA may have some beneficial eff...
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ژورنال
عنوان ژورنال: Decisions in Economics and Finance
سال: 2016
ISSN: 1593-8883,1129-6569
DOI: 10.1007/s10203-016-0183-3