Counterfactual Thinking and the Sunk Cost Effect

The influence of counterfactual thinking on the sunk cost effect was investigated. 80 participants (38 male) with a mean age of 19.76 years were recruited from an undergraduate population. Participants read scenarios in which they had made a prior, irretrievable investment (sunk cost) into buying tickets for a leisure event. In one condition participants nearly acquired tickets for $10 but actual paid $20, in a second condition participants acquired tickets $20 and, in a third condition, participants nearly acquired tickets for $30 but actual paid $20. Participants indicated how likely they were to use their tickets instead of pursuing a more enjoyable alternative activity. Results indicated an influence of sunk cost over decisions to pursue leisure activities. The hypothesis that participants who nearly acquired $20 tickets for $10 (those making an upward counterfactual comparison) would be more likely to use their tickets than participants who nearly had to pay $30 for their $20 ticket (those making a downward counterfactual comparison) was not supported. notReviewed other