Main > Everything Else

Movies You've paid to 'Sleep' through.

<< < (8/15) > >>

shmokes:
You've got that backward.  The ticket is a sunk cost.  Every minute of the movie is a prospective cost, or future cost.  

shmokes:
It's a sunk cost the moment you hand your money to the person at the ticket counter.  You misunderstand the concept.

shmokes:
If you can get a refund it's not a sunk cost.  Usually you cannot get a refund and anybody who refunds a movie because you didn't like it is sort of a moron.  Movie theaters don't guarantee that all the movies they show will be good.

The fact that you can watch another movie is the same as the fact that you can go to sleep or leave.  It doesn't change the fact that the movie ticket is a sunk cost.  It just illustrates the concept of basing economic decisions on future costs rather than sunk costs, i.e., don't stay in this movie just because you paid for it, that just increases the loss on your investment.

To make my point especially clear, even if you buy a ticket for The Bounty Hunter, but then you realize your mistake early enough to change theaters and watch How to Train Your Dragon, and you leave the theater perfectly ecstatic about your moviegoing experience, the ticket was still a sunk cost all along.  Or even if you never even went to The Bounty Hunter, but rather walked up, bought a ticket for HtTYD, watched the movie, loved it, left, the ticket was STILL a sunk cost.

Xiaou2:

 Ive never fallen asleep during a film.

 Ive known a few people that cant watch movies or TV without falling
asleep... and from what I speculate, is that they have ADD.

 

shmokes:

--- Quote from: pinballjim on April 01, 2010, 10:52:22 am ---When movie tickets are used as examples of sunk costs, why do you think they make it explicitly clear that you cannot get a refund or use watch another movie with the same ticket?  

Type all you want, you misused the term.


--- End quote ---

LMAO . . . Being kind of a spaz today?  I've never seen movie tickets used as an example of sunk costs before I used it as an example today.  I don't exactly find myself in the position of having someone explain to me what sunk costs are on a regular basis, though.  Anyway, from BusinessDictionary.com:

Money already spent and permanently lost. Sunk costs are past opportunity costs that are partially (as salvage, if any) or totally irretrievable and, therefore, should be considered irrelevant to future decision making. This term is from the oil industry where the decision to abandon or operate an oil well is made on the basis of its expected cash flows and not on how much money was spent in drilling it. Also called embedded cost, prior year cost, stranded cost, or sunk capital.

Navigation

[0] Message Index

[#] Next page

[*] Previous page

Go to full version