Pat is the manager of a large project that has been underway for the last eight months.It has now become apparent that, due to various external factors, the project is unlikely to succeed.Even though the best option would be to withdraw from the project, Pat continues to pump money and resources into it in the hope that the project's prospects will change.He reasons that he doesn't want all those months of hard work to go to waste.This is an example of the ________.
A) availability bias
B) hindsight bias
C) sunk costs error
D) self-serving bias

Question

Quizplus · Accepted Answer

Pat's decision to continue investing resources into a project that is unlikely to succeed is an example of the sunk costs error. This is the tendency to persist with a course of action, even when it is clear that the costs outweigh the benefits, because of the time, effort, and resources that have already been invested in it. Pat is continuing to invest in the project because he does not want the time, effort, and resources already invested to go to waste, rather than making a rational decision based on the project's current prospects for success.

Pat Is the Manager of a Large Project That Has