Jonathan, the CEO of The Alan Parsons Project LLC, has just received an offer fo

Question

Jonathan, the CEO of The Alan Parsons Project LLC, has just received an offer for a joint venture with a Mexican firm, which is offering the best manufacturing options that will lead to greater profits for the firm. Jonathan has outsourced to similar firms, wherein some have succeeded, and some have failed, although not with a firm in this country. Jonathan decides to go ahead with the joint venture deal. The likelihood is greatest that Jonathan is engaging in the following type of error/bias or stereotype:

Select one:

a. Internal Attribution Error

b. Confirmation Bias

c. External Attribution Error

Explanation / Answer

Answer: (b) Confirmation bias: In confirmation bias occurs when the people tend to filter out information and facts which are not according to their preconceived notions. In this case also Jonathan has decided to accept the joint venture proposal despite the fact that such ventures in the past have not only succeeded but also failed. Therefore it appears that he is suffering from a confirmation bias in which he has filtered out the possibility of failure as he has a preconceived notion that such ventures can be successful.

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