_________occurs when a manager purchases stock in a company and refuses to sell it even after it has dropped 40 percent in value over the past 6 months.
A)Satisficing
B)Optimizing
C)Bounded Rationality
D)Escalation of Commitment

Question

Quizplus · Accepted Answer

This behavior is an example of the "Escalation of Commitment," where an individual continues to invest in a decision despite new evidence suggesting it may not be the best course of action. In this case, the manager continues to hold onto the stock despite a significant loss in value, demonstrating a commitment to a previously made decision.

_________Occurs When a Manager Purchases Stock in a Company and Refuses