Economics

In the News

Avoiding the sunk cost fallacy - Alphabet abandons Loon

Geoff Riley

22nd January 2021

Alphabet has decided to scrap its balloon company Loon, designed to increase internet access through launching giant balloons to beam the internet to remote areas.

It seems that despite a sizeable investment, the technology isn't scaleable and the company hasn't fallen foul of the sunk cost fallacy.

Google says goodbye to giant internet balloons idea https://t.co/OuYJp8w1rK
— BBC News (World) (@BBCWorld) January 22, 2021

Alphabet punctures Loon internet balloon project https://t.co/UUXq1C488k
— Financial Times (@FT) January 22, 2021

Google's parent firm is shutting down Loon connectivity project https://t.co/3lqSl75zuu by @refsrc
— TechCrunch (@TechCrunch) January 22, 2021

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

@tutor2uGeoff