William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies _____.
A) evidence-based management
B) rational decision making
C) escalation of commitment
D) rationality
E) satisficing

Question

Quizplus · Accepted Answer

This scenario illustrates escalation of commitment. Escalation of commitment is a behavioral process in which a decision maker stays with a decision even when it appears to be wrong.

William Had Invested in an Initial Public Offering