Monday, February 26, 2018

26/2/18: South Korea Avoids Sunk Cost Fallacy


As shown consistently by economists, Olympic Games are a vanity project that wastes public resources, scarce public resources. In this case, South Korea's swift decision to demolish (https://www.aol.com/article/news/2018/02/22/south-korea-plans-to-demolish-newly-built-olympic-stadium/23368450/) its flagship Olympic stadium is a welcome case of cutting the future costs of maintaining the White Elephant. Or, in terminology of VUCA management: an act of avoiding the sunk cost fallacy.


You can read on economics of Olympic Games (err... Olympic waste) by following links from here: http://trueeconomics.blogspot.com/2014/02/922014-economics-of-olympic-games-part.html and http://trueeconomics.blogspot.com/2012/08/282012-bit-of-olympic-bubble.html and here: http://trueeconomics.blogspot.ie/2012/10/18102012-some-tough-love-from-stats-for.html. Have fun.

In the mean time, make sure you know your stance should your city/country attempt to bid for the next Olympic Waste.
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