Author: Leahy Robert L.
Publisher: Springer Publishing Company
ISSN: 1938-887X
Source: Journal of Cognitive Psychotherapy, Vol.14, Iss.4, 2000-01, pp. : 355-371
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Abstract
Normative models of decision making imply that individuals will utilize a hedonic calculus about future utility ratios (subjective utilities) in considering current alternatives. In contrast, descriptive models of actual decision making indicate that individuals utilize heuristics, ignore base rates, and consider previous decisions when considering future choices. Sunk costs are reflected in basing future decisions on previous commitments or investments, thereby ignoring subjective utility expectations. The effects of sunk costs on resistance to change are discussed and interventions to overcome these effects are examined.
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