Question

When the project was initiated, the Shoreham Nuclear Power Plant had an estimated cost of $75 million and a construction timeline of seven years. The project was eventually completed 23 years later at a cost of over $5 billion. The continuing allocation of resources to this project which ended up costing over 66 times its original estimate may be an example of ______.

	A.	escalation of commitment
	B.	escalation theory
	C.	tenacity
	D.	persistence theory

Answer 1

Here the project is being estimated wrongly and due to that the project is being completed well late and the budget is also overrun. Escalation of commitment occurs when there is such a condition that the individual or the group is being facing negative out comes from any decision taken but then also the work is being continued instead of altering the course and it occurred here also as the project is not been stopped due to that human behavior of escalation of commitment. So the correct answer is Option(a) Escalation of Commitment.