Which of the following occurs when managers "throw good money after bad"?
A) satisficing
B) rational ignorance
C) escalating commitment
D) superrationality

Question

Quizplus · Accepted Answer

Escalating commitment occurs when managers continue to invest resources in a project, even if the project is not succeeding, because they have already invested so much. This is often referred to as "throwing good money after bad." Satisficing is when managers make decisions that are satisfactory, but not necessarily optimal. Rational ignorance is when managers choose not to gather or use all available information when making decisions. Superrationality is a concept related to game theory and decision-making in complex situations.

Which of the Following Occurs When Managers "Throw Good Money