If you make a decision that does not turn out as planned Warren Buffet advises,"When you find yourself in a hole,stop digging." What behavioral influence on decision making does this advice attempt to prevent?
A) Intuition
B) Escalation of commitment
C) Empathy
D) Risk propensity
E) Political forces

Question

Quizplus · Accepted Answer

This advice attempts to prevent escalation of commitment, which is the tendency to continue investing time, money, or resources into a decision that is not working out, in the hopes of turning it around. By telling people to "stop digging" when they are in a hole, Buffet is advising them to recognize when a decision is not working out and to cut their losses before they become more entrenched.

If You Make a Decision That Does Not Turn Out