Comment on Visions and Mirages: The Sunk Cost Dilemma

Thu, 21 May 2015 15:05:34 GMT

Granted. And don't agree to non-iterative Prisoner's Dilemmas, either.

You're not always in a situation where this matters. Your boss agreed to the contract. Your boss is a perfect rationalist, who completely ignores sunk costs, and has produced perfect probability distributions, which include the knowledge that the other party is adjusting the workload. You suspect the other party at this point has a spy in your organization adjusting their requests according to his team of analysts' probability distributions to maximize the value they can extract from your company. How do you convince your boss it's not worth it to continue the project, regardless of the probability distribution he's currently produced?

Discuss