Including sunk costs when analyzing the merits of strategic options is an example of a managerial bias known as

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Including sunk costs when analyzing strategic options is an example of an escalation of commitment bias. This bias causes managers to continue investing in a project or decision even when it is not profitable or successful because of the resources already invested. It is important to consider the future costs and benefits when making strategic decisions, rather than being influenced by past investments.

Including Sunk Costs When Analyzing the Merits of Strategic Options