Question

Three years ago, the City of Recker committed to build a park and music venue by the river. It was expected to cost $2.5 million and be paid for from an additional meals tax in the community. The residents pushed back. Local restaurants suffered as people ate out less or patronized restaurants in neighboring communities. The project has stalled, but the town council kept pushing it on. This spring, a flood devastated the venue. The town council appears to have suffered from _______ bias.

Answer 1

Answer: C. escalation of commitment

Explanation:

Escalation of commitment bias refers to a situation where an entity continues to invest resources in an endevor that is not working out which means it is not contributing any value but is still being invested in.

The Town Council can see what has happened to the town and how their restaurants have suffered. The project has also stalled and yet they keep pushing it on. They are committed to an endevor that is not working out so this is an escalation of commitment bias.