Most business decisions are made under conditions of either risk or uncertainty. In your opinion, is it easier to make a decision under a condition of risk or a condition of uncertainty? Why? Provide an example from your experiences to support your answer.
- In decision-making, a behavioral factor that influences decisions is a cognitive bias called “Escalation of Commitment” (students are encouraged to further research this and other forms of cognitive bias in scholarly journals). Have you ever found yourself trapped in an escalation of commitment, or witnessed someone who had done so? What did it, the situation entail? What were the mitigating factors in play? How did it all end for you (or the person you are talking about)? What could have you (or the person) have done to avoid future similar problems?