search query: @indexterm sunk costs / total: 19
reference: 5 / 19
| Author: | Åsterbro, T. Jeffrey, S.A. Adomdza, G.K. |
| Title: | Inventor perseverance after being told to quit: the role of cognitive biases |
| Journal: | Journal of Behavioral Decision Making
2007 : JUL, VOL. 20:3, p. 253-272 |
| Index terms: | inventions individual behaviour sunk costs decision making cognition bias psychology |
| Language: | eng |
| Abstract: | After receiving highly diagnostic advice to cease effort, approximately one third (29 percent) of independent inventors (here as: invs.) are found to continue to spend money and 51 percent to spend time on projects. Based on survey data from actual invs., this paper deals with the role of overconfidence (as: o-c.), optimism (as: opt.), and the sunk-cost bias in these decisions. It is found that invs. are more overconfident and opt. than the general population. It is also found that opt. and past expenditures increased perseverance after being told to quit, while o-c. in judgment ability had no effect. After being told to quit, optimists spend 166 percent more than pessimists and those having already spent. |
SCIMA