An Exploration For Sunk Effort Effect

Sunk effort effect is a promising perspective for sunk cost effect in recent decades. Sunk cost effect refers to the irrational behavior that individual is induced by sunk cost (money, time or effort) to continue an endeavor for the falling program. Although sunk cost effect is a well-documented psychological phenomenon in monetary investments, sunk cost effect in the realm of behavioral investment, that is to say, behavioral sunk cost effect has rarely been studied. In view of existing research findings, the present paper primarily examined sunk effort effect and its influence factors.As a very simple test for sunk effort effect, Study1replicated sunk effort effect through real situation and fictitious situation, which suggested that sunk effort effect should be pervasive psychological phenomena just as sunk cost effect in the realm of money. In addition, results of Study1suggested that sunk effort effect is correlated positively and significantly with sunk effort level.A total of86college students were recruited as subjects in Study2, in which they were randomly assigned to one of the four between-subjects experimental conditions(sunk effort X sunk effort source). An analysis of the sunk effort level and sunk effort source shows a main effect of sunk effort level and an interaction between both independent variables. In practical terms, stubborn participants in the greater-effort condition are more likely to demonstrate sunk effort effect than concessive participants. However, there is no significant difference in lesser-effort condition.In Study3, we test the role of probability that an investment will succeed following an initial investment of effort, that is to say, probability of success estimates (PSE) in sunk effort effect. We performed a2(Sunk Cost:greater/lesser) X2(Timing of PSE: before/after investment decision) between-subjects experimental design. An analysis of both independent variables shows a significant main effect for sunk cost, while timing of PSE has no significant effect on sunk effort effect. Nonetheless, further analysis reveals the special role of PSE in sunk effort effect. Specifically, comparing to these who without sunk effort effect, participants with sunk effort effect obviously present a bigger PSE, meanwhile these ones in the greater-effort condition are more likely gave a bigger PSE than the ones in the lesser-effort condition. In a word, these results of Study3may suggest PSE is not necessary for sunk effort effect. Rather, sunk effort indeed plays a crucial role in sunk effort effect.