The tendency to allocate more resources to a failing course of action is:
A) escalation of commitment.
B) risk aversion.
C) representativeness.
D) anchoring.

Question

Quizplus · Accepted Answer

Escalation of commitment refers to the tendency of individuals or groups to continue investing resources, even when it is clear that the current course of action is failing. This can occur due to a variety of factors such as feelings of personal responsibility, fear of failure or loss, or a desire to justify past investments. As a result, the decision-makers may allocate more resources to the failing course of action, leading to further losses or inefficiencies.

The Tendency to Allocate More Resources to a Failing Course