YouTube was operating at a loss when Google bought it.Three years later it was still operating at a loss.Google may have experienced ____.
A) intuition
B) escalation of commitment
C) empathy
D) risk propensity
E) political forces

Question

Quizplus · Accepted Answer

Escalation of commitment refers to a situation where a decision-maker continues to invest resources (time, money, etc.) in a failing project, even though the evidence suggests that it is unlikely to succeed. Google's decision to continue operating YouTube at a loss for several years after acquiring it could be seen as an example of this phenomenon. Despite mounting losses, they may have felt compelled to continue investing in the platform due to their initial investment and the potential for future returns.

YouTube Was Operating at a Loss When Google Bought It