Joe Pre-Orders a Non-Refundable Movie Ticket

question 56

Multiple Choice

Joe pre-orders a non-refundable movie ticket. He then reads a number of reviews of the movie in question that make him realize that he will not enjoy it. He goes to see it anyway, rationalizing that otherwise his money will have been wasted. Is Joe succumbing to the Sunk Cost Fallacy, and why?

• A) Yes, since he invested a valuable asset, his time, in a project based on its previous costs.
• B) No, because the cost of the movie was not recoverable and would have been lost whatever action he took.
• C) No, because going to see the movie means that the product of his initial investment was realized as originally planned.
• D) Yes, because he incurred no further costs by going to see the movie.

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Definitions:

Bolsheviks

The Bolsheviks were a radical leftist group that led the Russian Revolution of 1917, eventually establishing a communist government in Russia.

Leon Trotsky

A Russian revolutionary, Marxist theorist, and Soviet politician who played a leading role in the Bolshevik Revolution of 1917.

Politically Conscious

Being politically conscious refers to the awareness and concern about political issues, policies, and the overall political environment, often leading to active participation in political processes.

Bolsheviks

A faction of the Russian Social Democratic Party, led by Vladimir Lenin, that seized power in Russia in 1917 and established a communist government.