Sunk cost accounting and entrapment in corporate acquisitions and financial markets : an experimental analysisKelly, Benjamin. 2008 (has links)
Thesis (Ph.D.) - University of St Andrews, February 2008.
The sunk cost effect is defined as an increased tendency to continue investing in an endeavor once a previous amount of money, effort, or time has been expended. The current experiments attempted to identify individual differences, as well as situational factors that affect this decision bias. A theoretical model was proposed, and support was found for the existence of two constructs related to the ultimate choice to re-invest. Participants’ ratings of the potential success of the project were strongly related to their decision to continue the endeavor, while their ratings of responsibility for the initial choice had a smaller, yet significant relationship with the investment rating. Variables contributing to these constructs were also investigated. Mixed results were found for the existence of individual differences among decision-makers in sunk cost decision tasks.
Thesis (M.S.)--Ohio University, August, 2004. Includes bibliographical references (p. 79-85).
Thesis (M.S.)--Ohio University, August, 2004. Title from PDF t.p. Includes bibliographical references (p. 79-85)
Sunk cost accounting and entrapment in corporate acquisitions and financial markets : an experimental analysisKelly, Benjamin 2008 (has links)
Sunk cost accounting refers to the empirical finding that individuals tend to let their decisions be influenced by costs made at an earlier time in such a way that they are more risk seeking than they would be had they not incurred these costs. Such behaviour violates the axioms of economic theory which states individuals should only consider incremental costs and benefits when executing investments. This dissertation is concerned whether the pervasive sunk cost phenomenon extends to corporate acquisitions and financial markets. 122 students from the University of St Andrews participated in three experiments exploring the use of sunk costs in interactive negotiation contexts and financial markets. Experiment I elucidates that subjects value the sunk cost issue higher than other issues in a multi-issue negotiation. Experiment II illustrates that bidders are influenced by the sunk costs of competing bidders in a first price, sealed-bid, common-value auction. In financial markets their exists an analogous concept to sunk cost accounting known as the disposition effect. This explains the tendency of investors to sell “winning” stocks and hold “losing” stocks. Experiment III demonstrates that trading strategies in an experimental equity market are influenced by a pre-trading brokerage cost. Not only are subjects influenced in the direction that reduces the disposition effect but also trading is diminished. Without the brokerage cost there was a significant disposition effect.
Der Einfluss von Persönlichkeitsvariablen auf den Sunk-Cost-Effekt: Eine kritische Replikation und Erweiterung The influence of personality variables on the sunk cost effect: A critical replication and extensionWarnecke, Sören 9 March 2017 (has links)
No description available.
(has links) (PDF)
The present paper provides further evidence on the importance of sunk costs as determinant of the turnover, entry, and exit of firms by studying the Austrian manufacturing industry using a 14-year panel. This study explicitly considers sunk costs related to investment in dedicated intangible assets such as investment relating to organizational and goodwill capital. The empirical results confirm the relevance of sunk costs as mobility barriers, their symmetry in respect to entry and exit and suggest that the influence of sunk costs is robust to aggregation. Sunk costs relating to capital expenditure and to organizational capital are found to be symmetric. Sunk costs relating to advertising expenditures seem to be only barriers to entry but not mobility barriers. Industry growth and profitability growth are found to be asymmetric, having a positive influence on entry and a negative on exit. Export growth is found to reduce the turnover of firms and to have a negative effect on exit suggesting that the decision to export may be associated with substantial sunk costs. (author's abstract) Series: Working Papers Series "Growth and Employment in Europe: Sustainability and Competitiveness"
Navarro, Anton Domingo.
Thesis (Ph. D.)--University of California, San Diego, 2007. Title from first page of PDF file (viewed January 11, 2008). Available via ProQuest Digital Dissertations. Vita. Includes bibliographical references (p. 61-63).
Gschwandtner, Adelina, Lambson, Val E.
29 November 2012
(has links) (PDF)
Two of the most robust results from dynamic competitive models of industrial organization suggest that higher sunk cost industries should exhibit (1) higher intertemporal variability in the market value of their firms, and (2) lower intertemporal variability in the size of their industries. These predictions have done well empirically. This paper argues on theoretical and empirical grounds that depreciation generates countervailing effects.
En kritisk granskning av centrala teoribildningar för strategisk analys : En tillämpning inom e-handelnLingonblad, Richard 2017 (has links)
Följande text avser att kritisk granska tre utvalda teorier och modeller som användes för att systematiskt formulera en Affärsplan. Denna artikel kommer att behandla teorierna/modellerna Porters femkraftsmodell, Switching och Sunk costs och VRIO-ramverket. Varje teori och modell kommer att presenteras kort samt beskrivas med upplevda för- och nackdelar som varje teori och modell kan tänkas ha. I slutet så kommer en beskrivning hur teorierna och modellerna bör användas och slutligen en uppmaning hur en potentiell utveckling av dessa skulle se ut.
Examensarbete uppdelat i 3 stycken deluppgifter. Del 1+2 presenterade vid disputation 2 Juni, del 3 som bifogas har lämnats in och blivit godkännt i digital form.
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