Description
Return incremental net payoff and a sunk-cost comparison.
Behavioral-economics tasks compare supplied payoffs, reference points, budgets and observed choices. A gap, dominance flag or response fraction illustrates a declared convention without identifying a psychological bias, predicting real choices or selecting a suitable financial action.
Return incremental net payoff and a sunk-cost comparison.
When to use this tool
Use Sunk Cost Incremental Payoff Gap when checking the stated experimental payoff, budget, reference or choice convention.
How to use the tool and how it works
- Enter futureBenefit, futureCost, sunkCost, alternativeNet. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read incrementalNet, netIncludingSunk, advantageOverAlternative. Use the output convention below.
Return incremental net payoff and a sunk-cost comparison. Require futureCost/sunkCost >= 0; incrementalNet = futureBenefit-futureCost, netIncludingSunk subtracts sunk cost, advantageOverAlternative subtracts alternativeNet from incrementalNet.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| futureBenefit | Future Benefit | Required. Finite number. |
| futureCost | Future Cost | Required. Finite number; minimum 0. |
| sunkCost | Sunk Cost | Required. Finite number; minimum 0. |
| alternativeNet | Alternative Net | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| incrementalNet | Incremental Net | Required. Finite number. |
| netIncludingSunk | Net Including Sunk | Required. Finite number. |
| advantageOverAlternative | Advantage Over Alternative | Required. Finite number. |
{
"input": {
"futureBenefit": 150,
"futureCost": 100,
"sunkCost": 200,
"alternativeNet": 20
},
"output": {
"incrementalNet": 50,
"netIncludingSunk": -150,
"advantageOverAlternative": 30
}
}Limitations and assumptions
- Payoffs and alternative value are supplied; this comparison does not establish an optimal real decision or model all consequences.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a well-defined study design and complete data to estimate behavior; assess real financial rights, consequences and uncertainty independently.
References
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