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GETTYSBURGSUNK

By Theodor ToncaOctober 24, 2013

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$519,000,000,000

- Bloomberg 7/2/2013

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$311,000,000,000

- Werner Rehm, Robert Uhlaner, Andy West Taking a Longer-Term Look at M&A Value Creation, McKinsey & Co. on Finance 42, Winter 2012.

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- Kevin Voigt - Mergers Fail More Often Than Marriages, CNN May 22, 2009.

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Why??

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The Sunk Cost Fallacy

- Hal R. Arkes & C. Blumer The Psychology of Sunk Cost Organizational Behavior & Human Decision Processes 35, 1985.

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Sunk Cost, noun

A irrecoverable cost, already incurred. Independentof any event that may occur in the future.

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Sunk Cost Fallacy, noun

An individual, organization or company continuing

on with a project they have already invested time,effort and or money in, irrespective of future costs

or benefits.

i.e. Throwing good money after bad.

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Concorde Fallacy

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Vietnam War

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Almost Every Corporate Acquisition

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Battle of Gettysburg

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Tony Romo

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Fairfax Financial Re: Blackberry?

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Awareness

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Anchoring + Endowment Effect

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