When managers add up all the money already spent on a project and conclude it is too costly to simply abandon it, it is known as a(n) ________ bias.
A)anchoring and adjustment
B)confirmation
C)availability
D)representativeness
E)sunk cost

Question

Quizplus · Accepted Answer

The sunk-cost bias, or sunk-cost fallacy, is when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.Most people have an aversion to "wasting" money.Especially if large sums have already been spent, they may continue to push on with an iffy-looking project to justify the money already sunk into it.

When Managers Add Up All the Money Already Spent on a Project