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| Subject: Sunk costs | Date: 11/10/2012 6:29 PM | |
| Author: yeilBagheera | Number: 306403 of 307036 | |
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That's the business term for a thinking trap that catches many of us. I see it in my thoughts and I read it here. Maybe I realize I'm thinking "I should keep that coat, because I spent more than $100 on it" -- but here and now, the truth is it doesn't matter how much I spent on it, because I can't change that decision. Any decision I make now (to clean, use, keep, donate, sell) needs to be based on current factors. And if I decide to sell it, than my accounts today will reflect some income today. [of course, when I'm contemplating my patterns of behavior, it's fair to judge whether I buy the right things and to count how many coats I have accumulated) Here's a friendly story about what I'm trying to describe http://www.getrichslowly.org/blog/2011/08/09/sunk-costs-and-... Economists say things like this: "costs that have already been incurred and that will not change with any of the specific choices now at the margin should be irrelevant to one’s decision" http://www.thefreemanonline.org/headline/sunk-cost YeilB looking at belongings with clear eyes |
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