Jake, the CEO of WinWest Inc., decided to launch a high-risk product.Despite the product's persistent failure, he was unwilling to withdraw it from the market.This scenario is an example of _____.
A)path dependency
B)risk aversion
C)escalation of commitment
D)participative decision making

Question

Jake, the CEO of WinWest Inc., decided to launch a high-risk product.Despite the product's persistent failure, he was unwilling to withdraw it from the market.This scenario is an example of _____.​
A)​path dependency
B)risk aversion​
C)escalation of commitment​
D)participative decision making​

Quizplus · Accepted Answer

The scenario described is an example of escalation of commitment, which refers to the tendency to continue investing in a failing project or venture despite mounting evidence of its likely failure. This behavior can be driven by factors such as sunk costs, social pressures, or cognitive biases.