John continues pouring money into his small business, even though he has never made a profit and is on the edge of bankruptcy. John has fallen into the escalation trap.

Question

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The escalation trap is a phenomenon where individuals or organizations continue to invest resources in a failing course of action in hopes of turning it around, even when evidence suggests that such efforts are unlikely to succeed. In this scenario, John is continuing to pour money into his failing business despite never making a profit and being near bankruptcy, which is a clear example of the escalation trap.

John Continues Pouring Money into His Small Business, Even Though