Which two concepts are best illustrated by the following passage from a January 29, 2008, report in The New York Times about Societe Generale trader Jerome Kerviel, whose trading misconduct eventually led the bank to lose more than $7 billion? "Over time, Mr. Kerviel had increased the size of his bets - he hedged his positions on paper with falsified documents and e-mail messages - but he remained convinced that success was just around the corner. 'He bet on the return of the markets that were extremely low and he imagined that there would be a return of the markets just as large as the losses,' [a French prosecutor] said. 'There is an addiction. There is a dependency on this complicated game of betting on the markets, and there is a sort of spiral into which it's difficult to exit.'"

a. Assumption of similarity and deindividuation.
b. Illusion of optimism and escalation of commitment.
c. Diffusion of responsibility and Objectivism.
d. Multiple ethical selves and Integrative Social Contracts Theory.

Ans: b. Illusion of optimism and escalation of commitment.