Question

Malik and his managers spent a large sum of money on the new training program, and they feel that there has been little improvement as a result of the investment. The training is scheduled to continue for two more months, and Malik feels that the company has already spent too much money on the training to simply abandon it. Malik is experiencing:_____.

Answer 1

Answer:

Sunk-cost Bias.

Explanation:

As Malik and his managers spent a large sum of money on the new training program, and they feel that there has been little improvement as a result of the investment. The training is scheduled to continue for two more months, and Malik feels that the company has already spent too much money on the training to simply abandon it. Malik is experiencing sunk-cost bias. He has started believing that he has wasted his money which can't be recovered back in any way and it is irrevocable. It is like when you send on something and you do not get the required results and you start believing that you cant get your money back. For example, when you get the membership of a gym to loose your weight but after 2 or 3 months, you feel that you are not loosing weight, then you can consider the amount spent on the membership as a sunk cost.