Anders, there’s no obvious connection between slow discounting and irrational persistence. Slow discounting is relevant when deciding whether to undertake a sunk investment (based on its ex-ante expected return), but once the investment has been incurred the sunk cost should be ignored as having no bearing on further decisions.
Anders, there’s no obvious connection between slow discounting and irrational persistence. Slow discounting is relevant when deciding whether to undertake a sunk investment (based on its ex-ante expected return), but once the investment has been incurred the sunk cost should be ignored as having no bearing on further decisions.