Should yesterday’s expense decide what you do next?
Imagine that plans change after you buy a non-refundable ticket. The payment is already gone, but going and staying home still have different future consequences; separating the two helps clarify what remains a choice.
Questions you could explore
- Which costs are truly unrecoverable?
- When could continuing still offer more future benefit than stopping?
Start reading
- OpenStax, Rice University2.1 How Individuals Make Choices Based on Their Budget Constraint
OpenStax’s Sunk Costs section distinguishes past unrecoverable spending from the costs and benefits of the next decision.
Ready to try your ideas aloud?
Your topic carries over. Record up to 2½ minutes, depending on your plan.