People Who Violate the Sunk Cost Principle Often

question 63

Multiple Choice

People who violate the sunk cost principle often

• A)attribute random fluctuations in the stock market to predictable causes,thereby increasing the likelihood that self-fulfilling prophecies will occur.
• B)feel entrapped by their own initial commitments to some failing course of action but continue to pursue it in an effort to justify their prior decisions.
• C)wait too long before making their investment decisions,thereby passing up the opportunity to buy stocks when they are least expensive.
• D)base their decisions purely on economic rules and ignore the psychological implications of their actions.

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