This is how I was taught about sunk costs at business school. Which schools are largely misunderstanding it I wonder? Also, is this really the most important decision making rule? Even so - maybe it isn't so good, or practical, to ignore sunk costs. What if a business partner squandered your investment? Not to worry - just a sunk cost. Spent all those hours looking for the Springsteen tickets - maybe your time was more valuable than that $500 offer.
I came in to say that this was one of the tidbits of info I always held onto from business school. The whole point of understanding sunk costs is avoiding the Sunk Cost Fallacy.
Everytime I hear a sports talk radio guy talking about how much an overpaid and underperforming player is still going to play I pull my hair out.
