Decision makers are often motivated to pour more resources into a failing project because of the large value of resources already put into the project. This problem is known as
A) bounded rationality.
B) intuition.
C) sunk costs effect.
D) self-justification effect.
E) prospect theory effect.

Question

Quizplus · Accepted Answer

The sunk costs effect refers to the tendency to continue investing in a project due to the amount already invested, rather than cutting losses and abandoning it.

Decision Makers Are Often Motivated to Pour More Resources into a Failing