Skip to content. | Skip to navigation

Personal tools
Sections

Commentaries on this Media!

Seinfeld Economics: The Strike (Submarine sandwiches)

by Linda Ghent

Sunk costs are costs that have already been incurred and which cannot be recovered. They should not be considered when making decisions.

From an economist's perspective, making choices involves thinking 'at the margin' - that is, making decisions based on small changes in resources. Doing so leads to the optimal decisions being made, subject to preferences, resources and informational constraints.

Seinfeld: The Strike (Submarine sandwiches)

Elaine has eaten 23 bad sub sandwiches, and if she eats a 24th, she'll get one free. She is determined to do it, even though Jerry advises her to ignore sunk costs and walk away.

from Seinfeld, Season 9 (1997)
Creator: Larry David & Jerry Seinfeld
Posted by Linda Ghent
Keywords
Options