A man has spent all day gambling on the slot machines. He has lost $250. If an escalation of commitment occurs, he will MOST LIKELY ________
A) invest more money into the machine in an attempt to recoup his losses
B) overestimate the times he will lose money gambling in the future
C) decide he shouldn't spend any more time gambling because he lost so much
D) estimate higher future losses based on increases in inflation

Question

Quizplus · Accepted Answer

Escalation of commitment is the tendency to continue investing in a losing course of action even when it's clear that it's not paying off. In the case of the man in the gambling scenario, he has already lost $250, so he is likely to invest more money into the slot machines in an attempt to recoup his losses, even though this may not be a rational decision. Option B is also a possibility, but not the most likely one in this scenario. Options C and D are unlikely in the context of escalation of commitment.

A Man Has Spent All Day Gambling on the Slot