= 27d567bc2d48d9f40e9ccc20ea370b15)
buybuydandavis comments on Sunk Costs Fallacy Fallacy - Less Wrong
You are viewing a comment permalink. View the original post to see all comments and the full post content.
= 783df68a0f980790206b9ea87794c5b6)
Loading…= b715d02e85f7b3b4ae65ca3d3e450868)
Subscribe to RSS Feed
Powered by Reddit
= f037147d6e6c911a85753b9abdedda8d)
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (28)
I think you've hit the nail on the head.
It's basic economics. We should work to maximize marginal utility per unit input cost, or bang for the buck. Once a project is half completed, you've got half as much work to do to collect on the value of the project. Nowhere in the analysis do I see any cognizance of the cost of completion, and actually delivering the goods.
The sunk cost issue is a red herring distracting you from your actual error.
Just to be thorough, one should not forget about future discounting. Therefore, a project that is half-finished might be worth more than a newly discovered project that would take the same total amount of time and produce slightly more than double the payout, on account of the first project finishing earlier and earning interest.