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Escalation of commitment, irrational escalation, or sunk cost fallacy, where people justify increased investment in a decision, based on the cumulative prior investment, despite new evidence suggesting that the decision was probably wrong. G. I. Joe fallacy, the tendency to think that knowing about cognitive bias is enough to overcome it. [66]
Individuals whose judgments are influenced by outcome bias are seemingly holding decision-makers responsible for events beyond their control. Baron and Hershey (1988) presented subjects with hypothetical situations in order to test this. [2] One such example involved a surgeon deciding whether or not to do a risky surgery on a patient.
Experts on decision support systems for practical reasoning have warned that the Ben Franklin method is only appropriate for very informal decision making: "A weakness in applying this rough-and-ready approach is a poverty of imagination and lack of background knowledge required to generate a full enough range and detail of competing ...
Older adults' lack of cognitive resources, such as flexibility in decision making strategies, may cause older adults to be influenced by emotional frames more so than younger adults or adolescents. [29] In addition, as individuals age, they make decisions more quickly than their younger counterparts. [11]
[5] Essentially, after a choice is made people tend to adjust their attitudes to be consistent with, the decision they have already made. [6] [2] [7] It is also possible that choice-supportive memories arise because an individual is only paying attention to certain pieces of information when making a decision or to post-choice cognitive ...
The same change in price framed differently, for example as a $5 discount or as a $5 surcharge avoided, has a significant effect on consumer behavior. [16] Although traditional economists consider this " endowment effect ", and all other effects of loss aversion, to be completely irrational , it is important to the fields of marketing and ...
Escalation of commitment is a human behavior pattern in which an individual or group facing increasingly negative outcomes from a decision, action, or investment nevertheless continue the behavior instead of altering course. The actor maintains behaviors that are irrational, but align with previous decisions and actions.
[2] [3] [4] While cognitive biases may initially appear to be negative, some are adaptive. They may lead to more effective actions in a given context. [5] Furthermore, allowing cognitive biases enables faster decisions which can be desirable when timeliness is more valuable than accuracy, as illustrated in heuristics. [6]