Akademik Veri Yönetim Sistemi
The Framework for Resilient Industry: A Holistic Approach for Developing Economies (Emerald Studies in Finance, Insurance, and Risk Management), ÖZEN ERCAN,N. Kumar,K. Sood,S. Grima, Editör, (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, ss.177-198, 2024
Introduction: When people need to take
decisions, being economic decisions or otherwise, their decisions tend to rely
on information the brain has already processed, and this includes the resources
that the person has already invested. This is called Sunk Cost Bias in the
Behavioural Economics literature. On the other hand, mental practices could
lead to the mental accounting bias, where people allocate a different value to
the fixed amount of money, depending on circumstances.
Purpose: In this paper, both biases mental
accounting and sunk cost are investigated for tourism industry in Türkiye.
Methodology: The topic is researched
through scenario-based questions and the Chi-square Automatic Interaction Detector
(CHAID) Method is applied.
Findings: As a result, it could be
reported that people, regardless of gender, fall into sunk cost and mental
accounting biases in decisions relating to their vacations. Mental accounting
biases can be primarily explained within the scenario questions posed rather
than gender, education, and income while sunk cost bias is explained by status,
“being s university student” and “income level.”
Practical implications: Rapid price
changes in tourism industry can disturb consumers who are mental accounting and
sunk cost biased. So, they can change their holiday preferences or dissatisfied
it and give negative feedbacks.
Keywords: Behavioral Economics, Sunk Cost
Fallacy, Biases, Mental Accounting, food and beverage experience, Tourism
industry, CHAID Method.
JEL Codes: Z32, D87, D91, G40, C01