Sunk Costs: does group decision make a difference?

Ana Luiza Paraboni, Jéssica Pulino Campara, Newton Carneiro Affonso da Costa Jr, Marcus Vinicius Andrade de Lima


Purpose – Investigate whether joint decision-making is distinct from individual decision-making in the case of biased sunk costs.


Design/methodology/approach – We applied 96 questionnaires containing 5 questions adapted from Arkes and Blumer (1985) with undergraduate students. Individuals were considered in the individual mode, in pairs and in trios, totaling 190 participants. For data analysis, we used descriptive statistics, Chi-square test of adherence and Pearson's Chi-square test.


Findings – When analyzing the opposite situation, five doubles and five triples presented biased behavior in all scenarios, whereas only two individuals had this same behavior.


Originality/value – Individuals generally take little rational decisions when considering the expenses incurred in the past to make decisions in the present. However, making decisions individually or in groups may not be able to change this behavior.


Behavioral finance; Sunk costs; Group decision making


Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM

Av. da Liberdade, 532 - São Paulo - SP Brasil Cep. 01502-001 Tel. 55 11 3272-2340
 The RBGN adopts the Creative Commons licens CC-BY Creative Commons Attribution 4.0 

The RBGN has the financial support from Fundação Escola de Comércio Álvares Penteado - FECAP and development agencies Conselho Nacional de Desenvolvimento Científico e Tecnológico - CNPq and Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – CAPES.

Desenvolvido por:

Logomarca da Lepidus Tecnologia