A treatise on the economics of sunk costs. Chapter 3 sets out a general microeconomic theory of sunk costs as an asymmetry in time by expanding conventional economic assumptions to incorporate business strategy concepts of changing business environments (including new technologies and rising incomes) and microeconomic systems models of firms and markets in disequilibrium. It is written for students in a style that most students find easy-to-read, with many illustrations; Chapter 4 shows how to apply this theory to the natural monopoly 'heavy utilities' of electricity, gas, water and rail, using decision trees and simplified systems models.
Used on U52077 Industrial Organisation (3rd year Economics module) since January 2017. Academics who want a free copy of the book or e-book should email the author at mhull@brookes.ac.uk or at markh@professionaleconomics.org to request a free copy.
Business, Economics, Mathematical Sciences and Statistics
economics of sunk costs
students, staff
Global citizenship
Faculties\Faculty of Business