You are part of a group making a decision about whether it is appropriate to discontinue research on a new drug. This new drug would save lives, but it is uncertain whether you can develop it within a reasonable time frame and at a reasonable cost. Your firm has already spent a small fortune on this drug. You have gathered so much information in preparation to making the decision that you are unable to sort the good information from the superfluous data. Well after you have started trying to make a decision, new information comes to light that implies that the drug may be able to be synthesized much more cheaply than was previously thought.
-The group later learns that the drug will be very expensive to manufacture, but the group decides to continue the project so that all the resources already spent on it will not have been wasted. In this case the group has done which of the following?
A) used the availability bias
B) used the anchoring bias
C) made an escalation of commitment
D) satisficed
E) made the ultimate attribution error

Question

Quizplus · Accepted Answer

The group has made an escalation of commitment by continuing with the project despite the newly discovered expensive manufacturing costs, solely to avoid wasting resources that have already been spent on the project.

You Are Part of a Group Making a Decision About