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140- Escalation Bias
P1 - Managers tend to reinvest in poor projects.
Managers suffer from escalation bias.
P2 - S: asked mgrs to invest in one of two RD projects. Half well, the other half poorly. Given a chance to invest and split investment between the two projects.
=> Subjects/poorly tend to invest more
P3 - ACS study E.B. using the mtl S gave to his subjects
change to ads / product design investment
change the dates to make more contemporary
=> E.B. did not generalize to these marketing decisions
P4 - One way:helped to define the limits
Other view: Not generalizable.
Furthermore: The subjects did not receive information for rational decision. e.g. future profitabillity for each alternative.
=> S's study produced little of value to Mgrs.
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