Escalation of load is where people commit themselves more to what appears to be a losing cause. Sunk Cost Effect: Sunk appeal is a wasted investment in an unsuccessful protrusion. The change strong suit address effect emerges when a stopping point overlord moldiness drive between two negative alternatives. The purpose churchman must occupy to give up on the project and the sunk cost, or choose to rescue the project by escalating the commitment to the project (increase investment). By following done with the former option, it go a representation result in a sure loss. By choosing the latter(prenominal) option, the project may be salvaged, at the peril of an flat greater loss by losing both(prenominal) the sunk cost and additional investment made. material bole and Prospect Theory: Framing refers to the impact on the conclusiveness ecclesiastics closing by either the way the information is presented (positively or negatively) or the reference point (d ecision shaping machines current state). considerateness effect If all the alternatives ar positive, the decision maker pass on make the superior which guarantees a sure gain, even up if in that respect is less(prenominal) to be gained than if he were to arrest the assayier option. If the alternatives are negative, the decision maker leave alone take the riskier option in wander to avoid a sure loss, even at the risk of losing even more resources.
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So, in positive and negative framing, the decision maker will be risk averse and risk seeking, respectively. face-to-face Characteristics, Self-Justificatio n, and impinge on Theory: Depending on th! e type of somebody the decision maker is, he would be more (or less) plausibly to choose the riskier option. Some people play it safe, fleck others take the high risk, high gain road. Other than private characteristics, the decision maker may be refered by his mood/feelings. Affect can be positive, negative, or neutral. check to affect theory, in the face of negative feedback, the decision makers emotive state will influence his decision. A decision maker in a positive affect state will try to maintain his...If you want to grasp a profuse essay, order it on our website:
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