In the context of biases and heuristics that affect an individual's decision-making strategies,_____ refers to the fact that people are reluctant to give up on a venture because of past investment.
A)sunk cost fallacy
B)endowment effect
C)hindsight bias
D)object permanence

Question

Quizplus · Accepted Answer

The sunk cost fallacy is the tendency for people to continue investing resources, such as time or money, into a project or decision based on the cumulative prior investment, even when continuing the investment is not rational or justifiable. The person may have invested a lot of time, money or effort, and giving up and abandoning the project may seem like a waste of those resources. As a result, they may continue to invest more resources, even if it is not in their best interest, to justify past investment. This phenomenon can be observed in various contexts, such as in personal or professional life, investment, and politics. On the other hand, the endowment effect, hindsight bias, and object permanence are different biases and heuristics that can affect decision-making strategies in various ways.

In the Context of Biases and Heuristics That Affect an Individual's