Monday, June 7, 2010

Economist's Notebook: Sunk Costs

Why didn't I think of this before?  The perfect example of sunk costs:

By the way, what this means is that, starting today the cost of erecting a high rise on this spot is less costly than if the hole weren't here, but that the costs already incurred in creating the hole should not factor in the decision today to erect it.

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