Tag Archives: Sunk Cost

What Is the Market Structure

Some industries are highly consolidated and are dominated by a few key players while others have few incumbents and are considered quite fragmented. Your strategy to enter either one of these markets will be quite different based on the market structure. For example, let's consider two travel related apps: one for flights and another for hotels. Of course today most popular [...]

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What To Do When You Exceed Your Estimate

We prioritize tasks based on our return on investment (ROI). If we undertake a task that we think should take one day to complete and we find ourselves still working on it two days later, it is time to reevaluate our efforts. For the most part, human beings are all poor estimators. Remember the last time you said it would [...]

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What To Do When You Exceed Your Estimate

We prioritize tasks based on our return on investment (ROI). If we undertake a task that we think should take one day to complete and we find ourselves still working on it two days later, it is time to reevaluate our efforts. For the most part, human beings are all poor estimators. Remember the last time you said it would [...]

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America’s First Multi-Millionaire – John Jacob Astor

Recently I watched the movie “The Revenant” with Leonardo DiCaprio about the fur trade in North America and was reminded of how John Jacob Astor's part in created the industry and the takeaways for every entrepreneur. John Jacob Astor was born in Germany and was one of nine children. Growing up, his father could barely keep his family fed. To relieve [...]

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Are Large Corporations Past Their Prime?

Corporations came into being to allow multiple investors to invest a portion of their capital across several risky, but potentially highly profitable endeavors.  When sailing ships were constructed to carry on world trading, it was a highly lucrative proposition but was fraught with risk from storms that sunk many vessels. If the ship returned, the investors were often rewarded handsomely. [...]

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The “Sunk Cost Bias”

Members of the ill-fated Everest expedition invested upwards of $65k each. They spent weeks hiking to reach the final base camp before their ultimate eighteen-hour push to the summit. There is an unwritten rule that if you have not made the summit by two o'clock in the afternoon of the final push, you [...]

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