Sunk costs and decision making
Beth has plans to go to a play and already has a $50 non refundable, non exchange able, and non transfer able ticket. Now Carl, whom Beth has wanted to date for a long time, asks her to a party. Beth would prefer to go to the party with Carl and forgo the play, but she doesn't want to waste the $50 she spent on the play ticket.
From the perspective of an economist, if Beth decides to go to the play, what has she just done?
Incorrectly allowed a sunk cost to influence her decision
Made an optimal choice
Correctly ignored a sunk cost