Which of the following behaviors is consistent with escalation bias?
A) Buying more of a stock as it increases in value.
B) Buying more of a stock as it decreases in value.
C) Selling a stock as it decreases in value.
D) Selling a stock as it increases in value.
E) Buying or selling a stock as it increases in value.

Question

Quizplus · Accepted Answer

Escalation bias involves committing more resources to a failing course of action, such as buying more of a stock as it decreases in value, in the hope of recovering losses.

Which of the Following Behaviors Is Consistent with Escalation Bias