SCENARIO 12-1 You are making a decision whether to discontinue research on a new drug.This new drug would save lives,but it is uncertain whether it can be developed 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 for making the decision that you are unable to sort the good information from the superfluous.
-Refer to Scenario 12-1.You feel that you are personally responsible for the lack of success with this drug.One course of action that you may be expected to take is
A)availability heuristic.
B)representative heuristic.
C)escalation of commitment.
D)satisficing.
E)ignoring the base rate.

Question

Quizplus · Accepted Answer

The course of action that is being described in this scenario is escalation of commitment. This is when a decision maker continues to invest resources into a failing project or venture, often in an effort to justify the resources that have already been expended. In this case, the decision maker feels personally responsible for the lack of success and may be inclined to continue investing resources into the project despite the uncertain outcome.

SCENARIO 12-1 You Are Making a Decision Whether to Discontinue