Some young drug enthusiasts are driving while under the influence and consider a fairly interesting application of public goods and private ownership. Eventually, they hear the familiar sound of a police car behind them and scramble to hide the evidence of their crimes. The guy in the backseat eats a lot of drugs in an effort to hide their illegal goods. The guy in the front seat points out that he ate $130 worth of drugs and then lets him know that he can pay him whenever. This same attitude isn’t taken when the drugs are thrown out of the window, which would have been the alternative. Just because the guy in the front seat had paid $130 for the drugs doesn’t mean that’s justification for getting reimbursed. A sunk cost is a cost that is unrecoverable and shouldn’t be considered when making decisions.
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