The Study Of Sunk Cost Effect Based On Regret Aversion

Sunk cost effect is a reasonless phenomenon in decision-making considering of the sunk cost, which is a cognition warp which exists extensively in people's dailylife.Firstly, the study proves that there is implicit warp of regret aversion, the warp exists implicit and automatic.Secondly, the study proves that there is sunk cost in decision-making which leads to sunk cost effect by experimentation, the warp of decision-making comes from the sunk cost effect, that means people would invest more by paying before.Thirdly, the study proves the consistency model of regret, it means people feel more regret when the state changes than the state continues, and the feeling of regret is deeper; the study proves the expectation would affect the level of regret, people would have higher expectations about the result of decision-making and more regret after the faulty decision-making at the same decision-making.Finally, the study discuss the sunk cost effect and the consistency model of regret explain differently about the same event by the conclusion of the first study (the tendency of implicit'regret aversion') and the conclusion of the second and the third study. The study infer the causality of regret and the sunk cost effect, and explain the reason of sunk cost effect by the consistency model of regret, that means the sunk cost effect comes from the reason that people avoid regret, the sunk cost effect could explain the consistency model of regret.