Why hadn’t Saturn made a profit?


 1.  Discuss how perceptual bias affected President George W. Bush’s decisions that lead the United States into war in Iraq in 2003. Did judgmental bias play a part in these decisions?

2.  Throughout its existence, Saturn has never turned a profit for General Motors. Research the history of Saturn and GM’s decision to continue funding it (although GM has now decided to close down the auto maker). Why hadn’t Saturn made a profit? Was escalation of commitment in play in GM’s decision? If so, how?

3. During the Cold War and post-Cold War eras, the United States and the Soviet Union have been competing with one another in attempts to gain a strategic advantage over one another. The Strategic Defense Initiative (SDI) was born out of that competition. Discuss the SDI and how the United States and the Soviet Union applied the competitive escalation paradigm.

4.  In 2001, Polaroid filed for bankruptcy protection. Investigate this filing. What caused the bankruptcy? Can it be traced to an escalation of commitment?

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