Asked by Kaitlynn McEwen on Jul 12, 2024
Verified
Escalation of commitment to a failing course of action
A) only occurs if the decision maker was personally responsible for the initial loss.
B) shows how people may treat sunk costs improperly.
C) is what defines the occurrence of a risky shift.
D) is the most common outcome of information overload.
E) only occurs in highly competitive situations.
Risky Shift
The tendency for groups to make riskier decisions than the average risk initially advocated by their individual members.
- Understand the role and effects of sunk costs on decision-making procedures.
Verified Answer
LC
Larone ClarkeJul 13, 2024
Final Answer :
B
Explanation :
Escalation of commitment to a failing course of action often involves treating sunk costs improperly, as individuals continue investing in a losing proposition due to the resources already committed, rather than evaluating the decision purely on its future merits.
Learning Objectives
- Understand the role and effects of sunk costs on decision-making procedures.