Ivan spoke out in a meeting in favor of a potential cost savings that would result from a new employee benefits program offered by the company. He later received information that showed that his initial decision about the cost savings was incorrect, but he was too embarrassed to publicly admit he was wrong, so he is sticking by his original statement. Ivan is experiencing
A)satisficing.
B)escalation of commitment.
C)bounded rationality.
D)poor use of rational making process.

Question

Quizplus · Accepted Answer

Ivan is experiencing escalation of commitment, which occurs when an individual continues to support a previously chosen course of action despite new evidence showing it to be mistaken. This is often due to the desire to avoid admitting an error or to justify initial decision-making.

Ivan Spoke Out in a Meeting in Favor of a Potential