Two supermarkets getting involved in a price war and continuing it despite incurring heavy losses is an example of _____.
A)path dependency
B)risk aversion
C)escalation of commitment
D)participative decision making

Question

Quizplus · Accepted Answer

This is an example of escalation of commitment, where parties continue a behavior or endeavor despite negative outcomes, often to justify prior investments of time, money, or effort.

Two Supermarkets Getting Involved in a Price War and Continuing