A(n)________ occurs when decision makers incorrectly fixate on past expenditures of time,money,or effort in assessing choices rather than focusing on future consequences.
A)hindsight bias
B)confirmation bias
C)overconfidence bias
D)sunk costs error

Question

Quizplus · Accepted Answer

The scenario described in the question is an example of the sunk costs error, also known as the sunk cost fallacy. This bias occurs when decision makers factor in past investments of resources (such as time, money, or effort) instead of focusing on the future consequences of a decision. In this way, past investments become "sunk costs" that cannot be recovered, and should not be considered in future decision making. Therefore, the best answer is D, sunk costs error.

A(n)________ Occurs When Decision Makers Incorrectly Fixate on Past Expenditures