Question

When Sebastian wrote the contract with BP for over two billion dollar s, he included targets for performance that had to be met before payment would be released. Sebastian was trying to avoid ____ bias

Answer 1

Answer:

Escalation of commitment

Explanation:

Escalation of commitment is the situation where an individual invest the resources into a course of action which is failing. Resources could be time, energy and money which an individual continue to invest into an investment as the individual  do not want to be inconsistent.

So, in this situation, before releasing the payment, he ensures that the targets should be met for the performance. He is avoiding the situation of escalation of commitment bias.