About a year ago, I heard a great story on NPR’s “Marketplace” that illustrated the concepts of sunk costs and opportunity costs using baseball players as a sample group. While fans marvel at the enormous contracts paid to star players,
there are thousands of younger players who toil away in the minor leagues for very
low salaries; if you add the numbers up, it is clear that for the average player,
quitting is more lucrative than chasing a dream. That’s because playing minor league ball imposes an opportunity cost on young athletes.
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Opportunity Costs, Sunk Costs, and the Emotions Driving CRM Failure
Posted by: Christopher J. Bucholtz June 28, 2012 05:00 AMAbout a year ago, I heard a great story on NPR’s “Marketplace” that illustrated the concepts of sunk costs and opportunity costs using baseball players as a sample group. While fans marvel at the enormous contracts paid to star players,
there are thousands of younger players who toil away in the minor leagues for very
low salaries; if you add the numbers up, it is clear that for the average player,
quitting is more lucrative than chasing a dream. That’s because playing minor league ball imposes an opportunity cost on young athletes.