The Impact of Childhood Environments on the Sunk-Cost Fallacy

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aut.relation.endpage541
aut.relation.issue3
aut.relation.journalPsychology and Marketing
aut.relation.startpage531
aut.relation.volume40
dc.contributor.authorJhang, Jihoon
dc.contributor.authorLee, Daniel Chaein
dc.contributor.authorPark, Jooyoung
dc.contributor.authorLee, Jaehoon
dc.contributor.authorKim, Jungkeun
dc.date.accessioned2023-07-05T22:43:52Z
dc.date.available2023-07-05T22:43:52Z
dc.date.issued2022-10-28
dc.description.abstractThe sunk-cost fallacy is a well-documented cognitive bias in the decision-making literature. Although the emerging literature on childhood socioeconomic status suggests that early-life environments shape individuals' decision strategies and have a long-lasting impact on their decisions, little is known about the impact of childhood socioeconomic status on the sunk-cost fallacy. Using two different scenarios and an actual choice task, we provide converging evidence that individuals who grew up in resource-scarce environments (those with lower childhood socioeconomic status) are reluctant to abandon inferior choices merely because they have already invested substantial resources in them, resulting in the sunk-cost fallacy. This fallacy occurs because individuals with lower childhood socioeconomic status tend to perceive the loss of their prior investments as more wasteful than those with higher childhood socioeconomic status.
dc.identifier.citationPsychology and Marketing, ISSN: 0742-6046 (Print); 1520-6793 (Online), Wiley, 40(3), 531-541. doi: 10.1002/mar.21750
dc.identifier.doi10.1002/mar.21750
dc.identifier.issn0742-6046
dc.identifier.issn1520-6793
dc.identifier.urihttp://hdl.handle.net/10292/16362
dc.languageen
dc.publisherWiley
dc.relation.urihttps://onlinelibrary.wiley.com/doi/10.1002/mar.21750
dc.rights.accessrightsOpenAccess
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/
dc.subject35 Commerce, Management, Tourism and Services
dc.subject52 Psychology
dc.subjectBehavioral and Social Science
dc.subjectBasic Behavioral and Social Science
dc.subjectPediatric
dc.subject15 Commerce, Management, Tourism and Services
dc.subject17 Psychology and Cognitive Sciences
dc.subjectMarketing
dc.subject35 Commerce, management, tourism and services
dc.subject52 Psychology
dc.titleThe Impact of Childhood Environments on the Sunk-Cost Fallacy
dc.typeJournal Article
pubs.elements-id482438
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