An Empirical Study on Sunk-Cost Fallacy under the Two-Part Tarriff 


Vol. 36,  No. 10, pp. 1192-1199, Oct.  2011


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  Abstract

The purpose of this paper is to test empirically whether the sunk cost fallacy occurres or not under the two-part tarriff and to give the desirable rate-making for minimizing sunk cost fallacy. According to the results of analysis highly paid monthly fee makes more traffics over the level of optimal consumption because of sunk cost fallacy. Therefore monthly fee reduction will cause the optimal consumption that is near the solution of their own utility function.

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  Cite this article

[IEEE Style]

L. Sang-Woo, C. Y. Ko, P. Joonho, 박준호, "An Empirical Study on Sunk-Cost Fallacy under the Two-Part Tarriff," The Journal of Korean Institute of Communications and Information Sciences, vol. 36, no. 10, pp. 1192-1199, 2011. DOI: .

[ACM Style]

Lee Sang-Woo, Chang Youl Ko, Park Joonho, and 박준호. 2011. An Empirical Study on Sunk-Cost Fallacy under the Two-Part Tarriff. The Journal of Korean Institute of Communications and Information Sciences, 36, 10, (2011), 1192-1199. DOI: .

[KICS Style]

Lee Sang-Woo, Chang Youl Ko, Park Joonho, 박준호, "An Empirical Study on Sunk-Cost Fallacy under the Two-Part Tarriff," The Journal of Korean Institute of Communications and Information Sciences, vol. 36, no. 10, pp. 1192-1199, 10. 2011.