Asked by Jarrett Covelli on May 10, 2024
Verified
Escalation of commitment only happens when the current decision maker is responsible for the previous sunk costs.
Previous Sunk Costs
Refers to resources that have already been spent and cannot be recovered.
- Become aware of the factors leading to an escalation of commitment and its outcomes.
Verified Answer
FM
Fatin MiraaMay 12, 2024
Final Answer :
False
Explanation :
Escalation of commitment can occur regardless of whether the current decision maker is responsible for the previous sunk costs, as it involves continuing a chosen course of action even when it is not yielding the expected results, often influenced by factors such as cognitive dissonance, loss aversion, and social factors, not solely responsibility for past decisions.
Learning Objectives
- Become aware of the factors leading to an escalation of commitment and its outcomes.