Malik and his managers spent a large sum of money on the new training program,and they feel that there has been little improvement as a result of the investment.The training is scheduled to continue for two more months,and Malik feels that with all the money already spent on the project,it is too costly to simply abandon it.This is known as ______.
A)blind bias
B)a training trap
C)confirmation bias
D)sunk-cost bias
E)a catch-22 effect

Question

Quizplus · Accepted Answer

The sunk-cost bias,or sunk-cost fallacy,is when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.Most people have an aversion to "wasting" money.Especially if large sums have already been spent,they may continue to push on with an iffy-looking project to justify the money already sunk into it.

Malik and His Managers Spent a Large Sum of Money