Irrational Perseverant or Unrecoverable Optimist? A Normative Reading of Sunk Cost Affected Behaviors

The purpose of this study was to analyze the relationship between the sunk cost effect and ambiguity in investment situations. Starting from the sensemaking approach and the decision dilemma theory, our hypothesis is that a sunk cost affected decision can be “constructively rational in ambiguous environments in the sense that decision makers have the opportunity