sunk costs - Economics Students Society of Australia

sunk costs

A collection of 3 posts

Rationality on trial in three exhibits

cost-benefit analysis

Rationality on trial in three exhibits

Practically every first-year Commerce student is introduced to Microeconomics through the all-important assumption of rational decision-makers: a “rational” person makes a decision by comparing the marginal benefit of an action against the marginal cost it incurs. The economy as visualised in the textbooks is made up of all these rational

economic theory

The Rational Fare Evader

Fare evading, i.e. not paying for the use of public transport, is a fairly significant issue for public transport providers. The Victorian Transport Authority has been tracking the estimated number of commuters who regularly fare evade and as you can see there is a sizeable portion who do this

The Economics behind Pirating

With massive technological advances, it is safe to say that through growing ease of access we have all pirated copyright material such as music, TV shows, software or movies in one way or another. Whether we have downloaded it ourselves through direct download sites and peer to peer networks, or