For college kids of economics and the curious non-economist layman, I beforehand defined the idea of “sunk value.” Right here is one other instance, from what I do. Suppose I’ve labored a couple of hours on an EconLog publish. From my first reflections and draft to the ultimate publish prepared for publication, by means of some complementary analysis, a couple of enhancing passes, and the selection of a featured picture, I may need spent 4 or 5 hours over a few days, a excessive value since I may have finished one thing else productive or straight fulfilling throughout that point. Time is brief and its alternative value excessive.
Suppose I now reckon that the majority of my readers will probably discover my newly-minted publish at finest banal. They won’t even really feel challenged to be taught extra. They could conclude that they’re unlikely to learn from studying me anymore, which represents a repute value for me. Briefly, I now suppose that clicking “Publish” will, to any extent further, carry a internet marginal value for me. It could be irrational to go forward “due to on a regular basis I spent on it.” Wasted time is a sunk value that won’t be erased by incurring additional prices. Previous time is gone eternally. It gained’t be “reimbursed” to me.
I feel and hope that I often don’t succumb to the sunk-cost fallacy. I typically delete, as I simply did, a publish able to publish.