sunk cost Ralph has a reputation for timing, for knowing when to plunge into a new market, when to rebalanee an investment portfolio, and when to engage in a product promotion. Ralph has just invested 100,000 dollars in a eomputer network and, upon installation, has discovered a work station produet that eompletely dominates the new system. The dominanee is so eornplete the new network should be replaeed irnrnediately. Ralph hesitates, on grounds the eherished reputation wilI be tarnished when word leaks out that 100,000 was wasted. Is Ralph's hesitation an eneounter with the sunk eost fallacy?

AppendixLO1