The sunk cost discount and the trip cost scaling problem
Cars are more expensive, but not when you already own one
You know how sometimes you see a common phenomenon, and you think there should logically already exist word for that phenomenon, but no matter how hard you search, you can find no such word? That’s what this article is about. I want to create new terms for two existing phenomena that, in my limited understanding, are not well-explored1 in spite of how common they are. I’m going to call them the sunk cost discount and the trip cost scaling problem.
[Read More]