When managers committed to an incorrect course of action increase their commitment to this action even as its limitations become manifest, this is known as

Question

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The given scenario describes the phenomenon of escalation of commitment, where decision-makers continue to invest resources in a failing course of action even when evidence suggests that it is not working. This can lead to irrational and costly decisions, as managers become more emotionally invested in the wrong choice and overlook warning signs that suggest they should change course. Option A describes the opposite phenomenon - de-escalation of commitment - where decision-makers decrease their investment in a failing project. Options B and D refer to the concept of economies of scale, where efficiencies are gained as production quantities increase, or diseconomies of scale, where inefficiencies emerge as production quantities grow too large.

When Managers Committed to an Incorrect Course of Action Increase