The Role of Discriminative Stimuli in the Sunk Cost Effect

Abstract

We employed a behavior-analytic analog of the sunk cost effect in which all trials started out with a short expected ratio to an imaginary monetary reward, but some trials assumed a longer expected ratio part way through the trial. Subjects had the (preferable) option of “escaping” the trial if the longer expected ratio had come into effect in order to bring on a new trial that again had a short expected ratio. With a between-subjects design we tested whether the presence of discriminative stimuli correlated with the expected ratios would affect escaping behavior. In one condition, such stimuli were present; in the other condition, they were absent. Subjects persisted significantly more in the condition where discriminative stimuli were absent.