By applying a decision-making process that was successful in the past,Larry decided to acquire a new business.This business has started to incur significant losses.Despite this,Larry refuses to admit the incompatibility of his decision-making process with every premise and persists with it.In this scenario,which of the following is evident?

Question

Quizplus · Accepted Answer

Larry's refusal to admit the incompatibility of his decision-making process with the current situation, despite the significant losses incurred, is a classic example of escalation of commitment. This refers to the tendency to continue investing in a course of action even if it's not working out, simply because of the sunk costs already involved.

By Applying a Decision-Making Process That Was Successful in the Past,Larry