Transferable Sunk Cost Hypothesis: A New Analysis of Sunk Cost Fallacy

Abstract

In this paper, we firstly propose the transferable sunk cost hypothesis, based on the variety of consumer’s multi-goal. We believe that historical sunk cost could transfer to investment, since the multi-goal change. Based on this hypothesis, we propose that ignore the real multi-goal and the transferable sunk cost could result in a misidentification of sunk cost fallacy. The real reason that cause sunk cost fallacy is the imprecise prediction of consumer.