WHEN ARE SUNK COSTS SUNK?

WHEN ARE SUNK COSTS SUNK? Although the article by Baliga and Ely presents its arguments as an exception to the long-established rule that it is rational to treat sunk costs as by-gones, I think it is easier to view the argument in the article as focusing on the difficulties in applying the long-established rule. If you can’t figure out what went wrong with the original decision, the previous analysis, even though not completely remembered, should be given some weight. To take the example of the expensive outfielder, perhaps some of the scouts who evaluated him before the decision saw some abilities that should be taken into account….