"We can't stop now. We've already invested $100,000 in the project." This speaker is acting on the ________.
A) anchoring effect
B) availability bias
C) representation bias
D) sunk costs error

Question

Quizplus · Accepted Answer

The speaker is referring to the sunk costs, which is the amount of money that has already been spent on a project and can't be recovered. They are using this as a justification to continue with the project, even if it may not be the best decision moving forward. This is known as the sunk costs error.

"We Can't Stop Now