Sunk-cost judgments across the child to adult lifespan.

Abstract

The sunk-cost effect (SCE) refers to the continuation of an activity after investing resources in the activity. Current developmental research on the SCE in childhood is mixed, but some researchers suggest that sunk-cost judgments decline with age after childhood. To better understand age differences in sunk-cost judgments across the lifespan, we conducted two experiments with the widest age range used in the literature thus far to examine the SCE across the lifespan, while using the same measures for all ages. Samples ranged from 2 to 97 years of age (Experiment 1: lab-based, N = 682; Experiment 2: community sample, N = 378). We found a similar pattern across both experiments: Adults and adolescents consistently made sunk-cost judgments, but children did not. We also observed differences in age patterns between different sunk-cost measures, suggesting that researchers should consider how individuals of different ages might respond to different decision-making vignettes. Our findings suggest that children do not consistently make sunk-cost judgments like older children and adults.