Ted decided to discontinue a product line a year ago; since then,it is clear this was the wrong decision.Nevertheless,Ted insists that he will be proven correct in time and he has no plans to change his mind.This is an example of
A)delusional behaviour.
B)escalation of commitment.
C)randomness error.
D)winner's curse.
E)hindsight bias.

Question

Quizplus · Accepted Answer

This scenario describes escalation of commitment, which occurs when a decision maker continues to invest time, money, or other resources into a project or decision despite evidence that suggests it may be failing. In this case, Ted made a decision to discontinue a product line, but despite evidence that this was the wrong decision, he refuses to change course or admit he was wrong. This persistence in the face of failure is characteristic of escalation of commitment.

Ted Decided to Discontinue a Product Line a Year Ago;