Final answer:
The decision-making error associated with the practice of persevering despite ongoing failure is known as (b) Escalating commitment. This error occurs when further resources are invested in a failing decision, influenced by the sunk cost fallacy and the reluctance to admit a past mistake.
Step-by-step explanation:
The decision-making error most associated with the old adage: If at first you don't succeed, try, try again is (b) Escalating commitment. This term refers to the phenomenon where individuals or organizations continue to invest in a decision despite new evidence suggesting that the decision was wrong to begin with, and the likelihood of a positive outcome is diminished. The behavior is driven by the desire not to appear to have failed or to admit that time, money, and effort have been wasted, thus falling prey to the sunk cost fallacy, where past investments justify further expenditure.
Escalating commitment can be contrasted with satisficing, where a person looks for a solution that is 'good enough' rather than optimal. It is also distinct from confirmation bias, which is the tendency to search for, interpret, and remember information in a way that confirms one's preexisting beliefs and hypotheses. Lastly, 'too late to fail' is not a commonly recognized decision-making error in the literature.
The effective management of sunk costs is critical: it is important to make decisions based on future potential, rather than past investments. Not succumbing to escalating commitment requires reflection and potentially admitting past errors, but it is essential for making rational decisions going forward.