According to the article “Sunk Costs in the NBA” by Staw B, managers will invest money and time in a project when they feel like the project is almost done. From my understanding of the article, sunk costs are losses that manager will take in consideration if they lead towards decision of getting rid of the certain product. Also, I would like to underline that managers do not want to suffer an embarrassment or show their expenditures in publicity, therefore, they will do their best to take personal responsibility in order to avoid sunk costs being a non-potent factor in making decision. It is common sense that managers will use only that resource for what they have paid the most. The author used three analyses to check the theory of sunk costs: role of costs in the decision to use players on the court, prediction of the number of seasons players survive in NBA, analysis of being trade. Results have proved that coaches gave more playing time to their best drafted team players and thus, kept them longer in spite of their injures and trade status.
Staw B, & Hoang, H. (1995). Sunk costs in the NBA: Why draft order affects playing time and survival in professional basketball. administrative science quarterly, 40, 474-494.