In the summer of 2013, Walt Disney released The Lone Ranger, starring Johnny Depp and produced by Jerry Bruckheimer. The film bombed at the box…

In the summer of 2013, Walt Disney released The Lone Ranger, starring Johnny Depp and produced by Jerry Bruckheimer. The film bombed at the box office: Worldwide, it earned about $245 million in revenue, well below the $375 million it cost to produce and market. Before Disney completed the film, executives became concerned that it might not be successful. They were disappointed in the early work on the film and temporarily stopped production. According to media reports, Disney executives took several factors into account as they considered whether to continue with production: Depp and Bruckheimer had made the very successful Pirates of the Caribbean for the studio; Depp and Bruckheimer agreed to accept smaller salaries if Disney agreed to finish the film; and Disney had already spent tens of millions of dollars on the film. How should Disney have decided whether to finish The Lone Ranger and release it to theaters? What role should the money Disney executives had already spent on the film have played in their decision?

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