A manager decided to continue to purchase insurance from a company that charged high premiums, even though the manager knew that he or she could get the same coverage for less.This is an example of what type of cognitive bias?
A)Escalating commitment
B)Illusion of control and overconfidence bias
C)Systematic errors
D)Representative bias
E)Prior hypothesis bias

Question

Quizplus · Accepted Answer

This is an example of escalating commitment, where a person continues to invest time or resources into a decision even when it is no longer rational or productive. In this case, the manager persists in buying insurance from a high-cost provider, despite the availability of cheaper options.

A Manager Decided to Continue to Purchase Insurance from a Company