Vinita buys a stock assuming that she can make profit out of it.However,shortly thereafter the stock value drops and she loses a lot of money.Her financial planner thinks the stock value will drop further and advices her to sell the stock.However,she has lost so much money already and therefore she doesn't want to sell.Instead she holds onto the stock in hopes to regain her loss.Instead she loses more.This phenomena is referred to as:
A) intuitive decision making
B) representativeness heuristic
C) escalation of commitment
D) rational decision making
Correct Answer:
Verified
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