Are Older Adults Less Subject to the Sunk-Cost Fallacy Than Younger Adults?

• DOI: 10.1111/j.1467-9280.2008.02138.x
• Publication Date: 2008-07-19T18:41:17Z
• Authors: JoNell Strough; Clare M. Mehta; Joseph P. McFall; Kelly L. Schuller
• Keywords: Fallacy; Commit

The sunk-cost fallacy is a decision-making bias that reflects the tendency to invest more future resources in situation which prior investment has been made, as compared with similar not made (e.g., spend time watching boring movie one paid watch than boring, but free, movie). Most research on this conducted college students (Arkes & Ayton, 1999). Although growing number of studies have investigated children, adolescents (Klaczynski, 2001), and nonhuman animals (Navarro Fantino, 2005), no whether older adults are less likely younger commit (cf. Bruine de Bruin, Parker, Fischhoff, 2007). Drawing from age differences negativity positivity biases information processing, we hypothesized would be fallacy. Soman (2004) offered loss aversion potential explanation for Supporting evidence comes young reported their decisions motivated by avoidance (Frisch, 1993). This focus losses may reflect adults’ processing. Younger weigh negative heavily positive (Baumeister, Bratslavsky, Finkenauer, Vohs, 2001). In contrast, demonstrate effect (Carstensen Mikels, 2005). Their balanced view gains (Wood, Busemeyer, Koling, Cox, Davis, If exclusively losses, contributes fallacy, then sunkcost