Which decision heuristic is demonstrated by the statement "We throw good money after bad?"
A) Availability heuristic.
B) Representativeness heuristic.
C) Escalation of commitment.
D) Bounded rationality.

Question

Quizplus · Accepted Answer

The statement "We throw good money after bad" exemplifies the escalation of commitment heuristic, where individuals continue to invest in a decision despite evidence of its ineffectiveness, often to justify previous investments.

Which Decision Heuristic Is Demonstrated by the Statement "We Throw