Concerning Sunk Cost fallacy in car usage and high cost of car-ownership [in Singapore].

Article posted by me on 2 Oct 2016 in…/why-the-coe-fails-at-dis…/

Yes, the Sunk Cost factor can play a deciding a role in giving the car a run for its money.

There may be other reasons, however, for wanting to own a car or to drive one’s car.

Despite the availability of public transport services – trains, buses and taxis – driving a privately owned car is still far more convenient, for some people. If time is crucial, from getting to point A from point B, travelling via public transport may not be the answer. If a person is handicapped physically, being infirm for instance, walking even for a short distance may be unthinkable, regardless of timing for arrival at one’s intended destination being inconsequential.

And of course there are the rich, where car-ownership is peanuts expenditure.

And if car sales – in terms of the number sold – have not diminished, from a statistical survey, say, then it can be persuasively argued that the COE as a tool to curb car ownership has not worked.

But the COE has raked in billions of dollars for the govt, and, obviously, is still a huge money-spinner, whether car ownership has not declined overall and thus its use as a tool in curbing private car use can be considered as no longer effective.

As long as COE is churning out the dollars, the govt would not be interested, not in the least, regarding whether SUNK COST is a fallacy in the minds of some people. The govt is more interested in how much money the COE spinner is raking in, not whether our roads are still heavily clogged with traffic.

By Car and petrol prices in Singapore are among the highest in the world. So why do Singaporeans keep making the expensive choice to drive?…

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