He joined Google in 2002 as a consultant, and has worked on the design of advertising auctions, econometrics, intermediate microeconomics by hal varian pdf, corporate strategy, and public policy. University of California, Berkeley in 1973.
Varian is married and has one child, Christopher Max Varian. This page was last edited on 28 December 2017, at 21:03. Unsourced material may be challenged and removed. However, many economists consider it a mistake to classify sunk costs as “fixed” or “variable. 400 million on an enterprise software installation, that cost is “sunk” because it was a one-time expense and cannot be recovered once spent. A “fixed” cost would be monthly payments made as part of a service contract or licensing deal with the company that set up the software.
Sunk costs should be kept separate. The “variable costs” for this project might include data centre power usage, for example. Traditional economics proposes that economic actors should not let sunk costs influence their decisions. Doing so would not be rationally assessing a decision exclusively on its own merits. Alternatively, a decision-maker might make rational decisions according to their own incentives, outside of efficiency or profitability. Sunk costs should not affect the rational decision-maker’s best choice.
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