Sunk Cost Irrationality and Irrational Bidding Trap
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Sunk cost irrationality, bidding traps and escalation are common elements of organizational, and especially, group decision making. Imagine that you are the only one that correctly observes that because of sunk cost irrationality regarding prior investments, the organization is getting into an irrational bidding trap. At the same time, you observe several of the elements of escalation in people's behavior. What do you do? Assuming you attempt to counteract this irrationality, how are you likely to be perceived? What is the likely reaction of your co-workers?
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Solution Summary
This response explains concepts like sunk cost irrationality, bidding traps, and escalation. It also provides suggests to counteract the irrationality, predicting the reaction of the organization in preparation.
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Naturally, the answer to this particular question will be very dependent upon personalities. However, generally speaking, when going against the grain in the business environment, a very convincing case must be made in order to get ...
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