Sunk Costs: does group decision make a difference?

Abstract

Purpose -Investigate whether joint decision-making is distinct from individual decision-making in the case of biased sunk costs.Design/methodology/approach -We applied 96 questionnaires containing 5 questions adapted from Arkes and Blumer (1985) with undergraduate students. Individuals were considered in the individual mode, in pairs and in trios, totaling 190 participants. For data analysis, we used descriptive statistics, Chi-square test of adherence and Pearson's Chi-square test.Findings -When analyzing the opposite situation, five doubles and five triples presented biased behavior in all scenarios, whereas only two individuals had this same behavior.Originality/value -Individuals generally take little rational decisions when considering the expenses incurred in the past to make decisions in the present. However, making decisions individually or in groups may not be able to change this behavior.