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Sunk Costs
In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with '' prospective costs'', which are future costs that may be avoided if action is taken. In other words, a sunk cost is a sum paid in the past that is no longer relevant to decisions about the future. Even though economists argue that sunk costs are no longer relevant to future rational decision-making, people in everyday life often take previous expenditures in situations, such as repairing a car or house, into their future decisions regarding those properties. Bygones principle According to classical economics and standard microeconomic theory, only prospective (future) costs are relevant to a rational decision. At any moment in time, the best thing to do depends only on ''current'' alternatives. The only things that matter are the ''future'' consequences. Past mistakes are irrelevant. Any cost ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyses what is viewed as basic elements within economy, economies, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and Expenditure, investment expenditure interact; and the factors of production affecting them, such as: Labour (human activity), labour, Capital (economics), capital, Land (economics), land, and Entrepreneurship, enterprise, inflation, economic growth, and public policies that impact gloss ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Promotion (marketing)
In marketing, promotion refers to any type of marketing communications, marketing communication used to inform target audiences of the relative merits of a product, service, brand or issue, persuasively. It helps marketers to create a distinctive place in customers' mind, it can be either a Cognition, cognitive or Emotion, emotional route. The aim of promotion is to increase brand awareness, create interest, generate sales or create brand loyalty. It is one of the basic elements of the market mix, which includes the four Ps, i.e., product, price, place, and promotion. Promotion is also one of the elements in the promotional mix or promotional plan. These are personal selling, advertising, sales promotion, direct marketing, publicity, word of mouth and may also include event-driven marketing, event marketing, exhibitions and trade shows. A promotional plan specifies how much attention to pay to each of the elements in the promotional mix, and what proportion of the budget should be ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Groupthink
Groupthink is a psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. Cohesiveness, or the desire for cohesiveness, in a group may produce a tendency among its members to agree at all costs. This causes the group to minimize conflict and reach a consensus decision without critical evaluation. Groupthink is a construct of social psychology but has an extensive reach and influences literature in the fields of communication studies, political science, management, and organizational theory, as well as important aspects of deviant religious cult behaviour. Overview Groupthink is sometimes stated to occur (more broadly) within natural groups within the community, for example to explain the lifelong different mindsets of those with differing political views (such as "conservatism" and "liberalism" in the U.S. political context or the purported benefits of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Unwillingness To Admit Failure
In sociology, face refers to a class of behaviors and customs, associated with the morality, honor, and authority of an individual (or group of individuals), and their image within social groups. Face is linked to the dignity and prestige that a person enjoys in terms of their social relationships. This idea, with varying nuances, is observed in many societies and cultures, including Chinese, Arabic, Indonesian, Korean, Malaysian, Laotian, Indian, Japanese, Vietnamese, Filipino, Thai, Russian and other East Slavic cultures. Face has particularly complex dynamics and meanings within the context of Chinese culture, and its usage in the English language is borrowed from Chinese. Definitions Although Chinese writer Lin Yutang claimed "face cannot be translated or defined", these definitions have been created: * Face is an image of self delineated in terms of approved social attributes. * Face is the respectability and/or deference which a person can claim for themself or f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Planning Fallacy
The planning fallacy is a phenomenon in which predictions about how much time will be needed to complete a future task display an optimism bias and underestimate the time needed. This phenomenon sometimes occurs regardless of the individual's knowledge that past tasks of a similar nature have taken longer to complete than generally planned. The bias affects predictions only about one's own tasks. On the other hand, when outside observers predict task completion times, they tend to exhibit a pessimistic bias, overestimating the time needed. The planning fallacy involves estimates of task completion times more optimistic than those encountered in similar projects in the past. The planning fallacy was first proposed by Daniel Kahneman and Amos Tversky in 1979. In 2003, Lovallo and Kahneman proposed an expanded definition as the tendency to underestimate the time, costs, and risks of future actions and at the same time overestimate the benefits of the same actions. According to this de ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cognitive Dissonance
In the field of psychology, cognitive dissonance is described as a mental phenomenon in which people unknowingly hold fundamentally conflicting cognitions. Being confronted by situations that challenge this dissonance may ultimately result in some change in their cognitions or actions to cause greater alignment between them so as to reduce this dissonance. Relevant items of cognition include peoples' actions, feelings, ideas, beliefs, Value (ethics), values, and things in the Natural environment, environment. Cognitive dissonance exists without signs but surfaces through psychological stress when persons participate in an action that goes against one or more of conflicting things. According to this theory, when an action or idea is psychologically inconsistent with the other, people automatically try to resolve the conflict, usually by reframing a side to make the combination congruent. Discomfort is triggered by beliefs clashing with new information or by having to conceptually re ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Optimism
Optimism is the Attitude (psychology), attitude or mindset of expecting events to lead to particularly positive, favorable, desirable, and hopeful outcomes. A common idiom used to illustrate optimism versus pessimism is Is the glass half empty or half full?, a glass filled with water to the halfway point: an optimist is said to see the glass as half full, while a pessimist sees the glass as half empty. In ordinary English, optimism may be synonymous with ''idealism''—often, unrealistic or foolish optimism in particular. The term derives from the Latin , meaning "best". To be optimistic, in the typical sense of the word, is to expect the best possible outcome from any given situation. This is usually referred to in psychology as dispositional optimism. It reflects a belief that future conditions will work out for the best. As a trait theory, trait, it fosters Psychological resilience, resilience in the face of Psychological stress, stress. Theories of optimism include dis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
SS Torrey Canyon
SS ''Torrey Canyon'' was an LR2 (Long Range 2) Suezmax class oil tanker with a cargo capacity of of crude oil. She ran aground off the western coast of Cornwall, United Kingdom, on 18 March 1967, causing an environmental disaster. At that time she was the largest vessel ever to be wrecked. The ship is named after Torrey Canyon, a location in Ventura County, California. Design and history When built by Newport News Shipbuilding in the United States in 1959, she had a deadweight tonnage capacity of . However, the ship was later enlarged by Sasebo Heavy Industries in Japan to capacity. At the time of the shipwreck she was owned by Barracuda Tanker Corporation, a subsidiary of the Union Oil Company of California, and registered in Liberia but chartered to BP. She was long, beam and had of draught.. Accident and oil spill On 19 February 1967, ''Torrey Canyon'' left the Kuwait National Petroleum Company refinery, at Mina, Kuwait (later Al Ahmadi) on her final voyag ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Torrey Canyon Oil Spill
The ''Torrey Canyon'' oil spill was one of the world's most serious oil spills. The supertanker ran aground on rocks off the south-west coast of the United Kingdom in 1967, spilling an estimated 25–36 million gallons (94–164 million litres) of crude oil. Attempts to mitigate the damage included the bombing of the wreck by aircraft from the Royal Navy and Royal Air Force. Hundreds of miles of coastline in Britain, France, Guernsey, and Spain were affected by the oil and other substances used to mitigate damage. It was the world's worst oil spill up to that point and led to significant changes in maritime law and oil spill responses. Background When laid down in the United States in 1959, ''Torrey Canyon'' had a capacity of 60,000 tons; the ship was later enlarged to 120,000 tons in Japan. She was named for a geographical feature in California. ''Torrey Canyon'' was registered in Liberia and owned by Barracuda Tanker Corporation, a subsidiary of Union Oil Company of Califo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Aircraft Pilot
An aircraft pilot or aviator is a person who controls the flight of an aircraft by operating its directional flight controls. Some other aircrew members, such as navigators or flight engineers, are also considered aviators because they are involved in operating the aircraft's navigation and engine systems. Other aircrew members, such as drone operators, flight attendants, mechanics and ground crew, are not classified as aviators. In recognition of the pilots' qualifications and responsibilities, most militaries and many airlines worldwide award aviator badges to their pilots. Definition The first recorded use of the term ''aviator'' (''aviateur'' in French) was in 1887, as a variation of ''aviation'', from the Latin ''avis'' (meaning ''bird''), coined in 1863 by in ''Aviation Ou Navigation Aérienne'' ("Aviation or Air Navigation"). The term ''aviatrix'' (''aviatrice'' in French), now archaic, was formerly used for a female pilot. The term ''aviator'' (''aviateur'' i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sea Captain
A sea captain, ship's captain, captain, master, or shipmaster, is a high-grade licensed mariner who holds ultimate command and responsibility of a merchant vessel. The captain is responsible for the safe and efficient operation of the ship, including its seaworthiness, safety and security, cargo operations, navigation, crew management, and legal compliance, and for the persons and cargo on board. Duties and functions The captain ensures that the ship complies with local and international laws and complies also with company and flag state policies. The captain is ultimately responsible, under the law, for aspects of operation such as the safe navigation of the ship, its cleanliness and seaworthiness, safe handling of all cargo, management of all personnel, inventory of ship's cash and stores, and maintaining the ship's certificates and documentation. One of a shipmaster's particularly important duties is to ensure compliance with the vessel's security plan, as required by the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cognitive Bias
A cognitive bias is a systematic pattern of deviation from norm (philosophy), norm or rationality in judgment. Individuals create their own "subjective reality" from their perception of the input. An individual's construction of reality, not the Objectivity (philosophy), objective input, may dictate their behavior in the world. Thus, cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, and irrationality. While cognitive biases may initially appear to be negative, some are adaptive. They may lead to more effective actions in a given context. Furthermore, allowing cognitive biases enables faster decisions which can be desirable when timeliness is more valuable than accuracy, as illustrated in Heuristic (psychology), heuristics. Other cognitive biases are a "by-product" of human processing limitations, resulting from a lack of appropriate mental mechanisms (bounded rationality), the impact of an individual's constitution and bi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
