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Lipsey & Chrystal: Economics 11e

Chapter 12

The high price of oil has led to falls in the second-hand value of petrol-guzzling cars.  This links to the value of durable assets discussed in Chapter 12 and it also links to input demand analysis in Chapter 10 and the principle of substitution (between inputs) discussed in Chapter 6:
Financial Times, Friday, July 11, 2008
www.ft.com/cms/s/0/ea7adec6-4f6c-11dd-b050-000077b07658.html

An application of “sunk costs” to the war in Iraq appears at:
USA Today, August 15, 2007
http://blogs.usatoday.com/oped/2007/08/sunk-costs-and-.html

An application of the winner’s curse to sport appears at:
The Sports Economist, Sunday, July 27, 2008
www.thesportseconomist.com/2008/07/free-agents-and-winners-curse.htm