Samir authorizes the expenditure of an additional $200,000 for the production of a new product despite mounting concerns from top management that it will be unprofitable.His behaviour illustrates the phenomenon of __________.
A)confirmation bias
B)represenation bias
C)anchoring bias
D)availability bias
E)escalation of commitment

Question

Quizplus · Accepted Answer

Samir's behavior illustrates the phenomenon of escalation of commitment, which refers to the tendency to continue investing in a course of action even when it's not working out, often due to the desire to justify or recoup past investments of time or money. Despite mounting concerns from top management, Samir is committing even more resources to the new product.

Samir Authorizes the Expenditure of an Additional $200,000 for the Production