Question 1

Which of the following best describes nonrational escalation of commitment?

Accepted Answer

A) Strong commitment to an idea that was previously chosen. 
B) Commitment to a previous course of action beyond the point prescribed by rational models of decision making. 
C) Continuing with a previously chosen course of action when the potential future benefits outweigh the potential future costs. 
D) Commitment to a previously chosen course of action when the expected value of continuing the project is positive. 
A) Strong commitment to an idea that was previously chosen. 
B) Commitment to a previous course of action beyond the point prescribed by rational models of decision making. 
C) Continuing with a previously chosen course of action when the potential future benefits outweigh the potential future costs. 
D) Commitment to a previously chosen course of action when the expected value of continuing the project is positive. B

Question 2

Which of the following is an underlying mechanism of escalation of commitment?

Accepted Answer

A) The confirmation trap. 
B) Competitive irrationality. 
C) Evaluating potential consequences from different reference points. 
D) Self-justification. 
A) The confirmation trap. 
B) Competitive irrationality. 
C) Evaluating potential consequences from different reference points. 
D) Self-justification. D

Question 3

Which of the following is a useful advice for a competing party that wishes to avoid competitive escalation of commitment?

Accepted Answer

A) Pursue mutual disclosure of intentions between you and your competitor. 
B) Make an initial high bid that will discourage the competitor from entering the auction. 
C) Do not focus too much on the competitor's needs and interests,but on your own. 
D) Know the expected bidding patterns of your competitor in advance. 
A) Pursue mutual disclosure of intentions between you and your competitor. 
B) Make an initial high bid that will discourage the competitor from entering the auction. 
C) Do not focus too much on the competitor's needs and interests,but on your own. 
D) Know the expected bidding patterns of your competitor in advance. A

Question 4

The tendency to escalate commitment is more pronounced when:

Accepted Answer

A) The commitment is to a failed decision made by oneself. 
B) The failure of the initial commitment can be explained with a causal,unrelated account. 
C) The escalation is made by an individual,compared with escalation made by a group. 
D) All of the above. 
A) The commitment is to a failed decision made by oneself. 
B) The failure of the initial commitment can be explained with a causal,unrelated account. 
C) The escalation is made by an individual,compared with escalation made by a group. 
D) All of the above.

Question 5

Specific actions of parties engaged in competitive irrationality are:

Accepted Answer

A) More likely to occur as their commitment escalates. 
B) Irrational to the extent that the initial commitment is irrational. 
C) Not easily identified as irrational. 
D) Rational by definition. 
A) More likely to occur as their commitment escalates. 
B) Irrational to the extent that the initial commitment is irrational. 
C) Not easily identified as irrational. 
D) Rational by definition.

Question 6

When deciding whether or not to escalate commitment to a chosen course of action,our choice should depend on:

Accepted Answer

A) The expected value of further investment. 
B) Our sunk costs. 
C) Our initial reasons for choosing that course of action. 
D) None of the above. 
A) The expected value of further investment. 
B) Our sunk costs. 
C) Our initial reasons for choosing that course of action. 
D) None of the above.

Question 7

Any loss from an initial investment will systematically encourage an individual to continue the previously selected course of action,due to the human tendency to be risk-_________ in negatively framed problems.

Accepted Answer

The answer of Any loss from an initial investment will...

Question 8

When choosing whether or not to continue pursuing a selected course of action,previous commitments and spent resources should be regarded as ____________ .

Accepted Answer

The answer of When choosing whether or not to continue...

Question 9

What are the reasons for the difference between groups and individuals in the likelihood of escalating commitment and in the degree to which commitment is escalated?

Accepted Answer

groups tend to be less prone to escalati

Question 10

Explain how George Bush's presidential campaign in 2004 benefited from his escalation of commitment to unpopular stances on various issues,including the war in Iraq.

Accepted Answer

Bush positioned himself as a steady lead

Question 11

Why is it so hard for managers to internalize the sunk-cost concept when making decisions?

Accepted Answer

it is hard to recognize the re

Question 12

Explain the paradox that a manager faces,when choosing between changing course of action and escalating commitment to it.

Accepted Answer

Making the best decision for the organiz

Question 13

Escalation of commitment is more pronounced in simultaneous decisions than in serial decisions.

Accepted Answer

A) True 
 B)False

Question 14

In a competitive auction,continuing to bid after both one and one's competitors have started bidding is considered irrational escalation of commitment.

Accepted Answer

A) True 
 B)False

Question 15

A department manager has personally decided to hire a new employee.This employee's performance,however,proves to be below expectations.Nevertheless,the manager decides to keep the employee,explaining away his current performance as merely part of the learning process.This escalation of commitment may be due to:

Accepted Answer

A) Perceptual biases. 
B) Judgmental biases. 
C) Impression management. 
D) All of the above 
A) Perceptual biases. 
B) Judgmental biases. 
C) Impression management. 
D) All of the above

Question 16

The confirmation trap is a primary underlying bias of escalation of commitment.

Accepted Answer

A) True 
 B)False

Question 17

Groups are _________ likely than individuals to escalate commitment; group escalation of commitment is likely to be ____________ extreme than individual escalation of commitment.

Accepted Answer

The answer of Groups are _________ likely than individuals to...

Question 18

Which of the following is not likely to produce escalation of commitment?

Accepted Answer

A) A present state that is below expectations. 
B) A present decision that is likely to generate further losses. 
C) A present decision that is a result of a previous decision. 
D) Past investment of a great deal of resources in a selected course of action. 
A) A present state that is below expectations. 
B) A present decision that is likely to generate further losses. 
C) A present decision that is a result of a previous decision. 
D) Past investment of a great deal of resources in a selected course of action.

Question 19

Which is not a good mechanism for protecting oneself from irrational escalation of commitment?

Accepted Answer

A) Separating initial decisions from future decisions. 
B) Rotating decision makers between various stages of the process,so that the person who chose the initial course of action will not be the one choosing whether or not to continue pursuing it. 
C) Identify reasons for justifying the initial course of action,in order to avoid the creation of cognitive dissonance,which ultimately leads to irrational escalation of commitment. 
D) Consider the decision from the perspective of one's competitors. 
A) Separating initial decisions from future decisions. 
B) Rotating decision makers between various stages of the process,so that the person who chose the initial course of action will not be the one choosing whether or not to continue pursuing it. 
C) Identify reasons for justifying the initial course of action,in order to avoid the creation of cognitive dissonance,which ultimately leads to irrational escalation of commitment. 
D) Consider the decision from the perspective of one's competitors.

Question 20

How can an organization change its reward scheme to discourage the preference of impression management over high-quality decision making?

Accepted Answer

rewards should be determined b

Which of the following best describes nonrational escalation of commitment?

Which of the following is an underlying mechanism of escalation of commitment?

Which of the following is a useful advice for a competing party that wishes to avoid competitive escalation of commitment?

The tendency to escalate commitment is more pronounced when:

Specific actions of parties engaged in competitive irrationality are:

When deciding whether or not to escalate commitment to a chosen course of action,our choice should depend on:

Any loss from an initial investment will systematically encourage an individual to continue the previously selected course of action,due to the human tendency to be risk-_________ in negatively framed problems.

When choosing whether or not to continue pursuing a selected course of action,previous commitments and spent resources should be regarded as ____________ .

What are the reasons for the difference between groups and individuals in the likelihood of escalating commitment and in the degree to which commitment is escalated?

Explain how George Bush's presidential campaign in 2004 benefited from his escalation of commitment to unpopular stances on various issues,including the war in Iraq.

Why is it so hard for managers to internalize the sunk-cost concept when making decisions?

Explain the paradox that a manager faces,when choosing between changing course of action and escalating commitment to it.

Escalation of commitment is more pronounced in simultaneous decisions than in serial decisions.

In a competitive auction,continuing to bid after both one and one's competitors have started bidding is considered irrational escalation of commitment.

The confirmation trap is a primary underlying bias of escalation of commitment.

Groups are _ likely than individuals to escalate commitment; group escalation of commitment is likely to be ____ extreme than individual escalation of commitment.

Which of the following is not likely to produce escalation of commitment?

Which is not a good mechanism for protecting oneself from irrational escalation of commitment?

How can an organization change its reward scheme to discourage the preference of impression management over high-quality decision making?

Introduction to Managerial Decision Making

Overconfidence

Common Biases

Bounded Awareness

Framing and the Reversal of Preferences

Motivational and Emotional Influences on Decision Making

Fairness and Ethics in Decision Making

Common Investment Mistakes

Making Rational Decisions in Negotiations

Negotiator Cognition

Improving Decision Making

Filters

Exam 7: The Escalation of Commitment

Which of the following best describes nonrational escalation of commitment?

Which of the following is an underlying mechanism of escalation of commitment?

Which of the following is a useful advice for a competing party that wishes to avoid competitive escalation of commitment?

The tendency to escalate commitment is more pronounced when:

Specific actions of parties engaged in competitive irrationality are:

When deciding whether or not to escalate commitment to a chosen course of action,our choice should depend on:

Any loss from an initial investment will systematically encourage an individual to continue the previously selected course of action,due to the human tendency to be risk-_________ in negatively framed problems.

When choosing whether or not to continue pursuing a selected course of action,previous commitments and spent resources should be regarded as ____________ .

What are the reasons for the difference between groups and individuals in the likelihood of escalating commitment and in the degree to which commitment is escalated?

Explain how George Bush's presidential campaign in 2004 benefited from his escalation of commitment to unpopular stances on various issues,including the war in Iraq.

Why is it so hard for managers to internalize the sunk-cost concept when making decisions?

Explain the paradox that a manager faces,when choosing between changing course of action and escalating commitment to it.

Escalation of commitment is more pronounced in simultaneous decisions than in serial decisions.

In a competitive auction,continuing to bid after both one and one's competitors have started bidding is considered irrational escalation of commitment.

The confirmation trap is a primary underlying bias of escalation of commitment.

Groups are _________ likely than individuals to escalate commitment; group escalation of commitment is likely to be ____________ extreme than individual escalation of commitment.

Which of the following is not likely to produce escalation of commitment?

Which is not a good mechanism for protecting oneself from irrational escalation of commitment?

How can an organization change its reward scheme to discourage the preference of impression management over high-quality decision making?

Introduction to Managerial Decision Making

Overconfidence

Common Biases

Bounded Awareness

Framing and the Reversal of Preferences

Motivational and Emotional Influences on Decision Making

Fairness and Ethics in Decision Making

Common Investment Mistakes

Making Rational Decisions in Negotiations

Negotiator Cognition

Improving Decision Making

Filters

Groups are _ likely than individuals to escalate commitment; group escalation of commitment is likely to be ____ extreme than individual escalation of commitment.