ECONOMICS

Detailed explanation-1: -T/F: Escalation of commitment refers to staying with a decision even when there is clear evidence it’s wrong. Answer: TRUE.

Detailed explanation-2: -Commitment bias, also known as the escalation of commitment, describes our tendency to remain committed to our past behaviors, particularly those exhibited publicly, even if they do not have desirable outcomes.

Detailed explanation-3: -The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.

Detailed explanation-4: -Which of the following statements best defines escalation of commitment? The tendency to continue committing resources to a failing course of action.

Detailed explanation-5: -The escalation of commitment (or the related sunk-cost fallacy) is when we behave completely irrationally and continue to pursue something that delivers increasingly negative outcomes (monetarily, psychologically, emotionally, etc.) instead of altering course.