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Sunk Cost

by Jadrian

Walter stops by to see Jesse and they reminisce about why they kept using the old RV even after they had money. While it seemed like the right facility in the beginning, the two never seemed to upgrade until they started working for Gus Fring. The ownership effect (also called the endowment effect) is when people aren't willing to give up something that they possess at the same value at which they would purchase the item had they not had it. Walter and Jesse loved that old RV even though it had a lot of problems. From a rationality standpoint, they may have been over fixated on their sunk costs.

Breaking Bad: Inertia

Why keep a crappy RV when they could buy better?

from Breaking Bad (2012)
Creator: Vince Gilligan
Distributor: AMC
Posted by Jadrian
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