Skylar is the owner of Pirate Pizza Bus, a popular food truck. The food truck was so successful that she decided to open a brick-and-mortar location several years ago. While the truck continues to earn a good profit, the physical restaurant has been performing poorly. She has continued to invest a lot of energy and money into trying to make the restaurant profitable, but nothing is working. Current projections show that the restaurant will continue to lose money, but she decided to go ahead and invest a large sum of money into more advertising for it. Skylar is demonstrating which bias?

Question

Felix

Business

14 January, 17:50

Skylar is the owner of Pirate Pizza Bus, a popular food truck. The food truck was so successful that she decided to open a brick-and-mortar location several years ago. While the truck continues to earn a good profit, the physical restaurant has been performing poorly. She has continued to invest a lot of energy and money into trying to make the restaurant profitable, but nothing is working. Current projections show that the restaurant will continue to lose money, but she decided to go ahead and invest a large sum of money into more advertising for it. Skylar is demonstrating which bias?

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Answers (1)

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Azaria Ritter · Answer 1

Commitment bias

Explanation:

Commitment bias refers to keep doing something because that is what you have always done, or because that is what you have said before that you wanted to do. This means that you are so committed to an idea, that you cannot realize that it is probably not a very good idea.

In this case, Skylar is so committed to making her brick and mortar restaurant work, that she cannot understand that it probably will never do.