Jake, the CEO of WinWest Inc., launches a new product. Despite the product's persistent failure, he is unwilling to withdraw it from the market because he believes that the product will be profitable in the long term. This scenario is an example of _____.

A) path dependency
B) risk aversion
C) escalation of commitment
D) participative decision making

Escalation of Commitment

The tendency to continue investing in a project or decision despite evidence of its failing, driven by emotional attachment or the desire to justify prior investments.

Persistent Failure

The ongoing inability to achieve success or meet objectives.

Long Term

Relating to or involving an extended period of time, typically emphasizing planning or thinking that takes into account the distant future rather than just immediate needs.