A common decision dilemma that can feature escalation of commitment occurs when a decision maker must decide between ending a losing course of action and increasing commitment to it. The decision maker hopes to get future positive results and recover past losses.

Question

Quizplus · Accepted Answer

Escalation of commitment refers to a pattern where individuals or organizations continue to invest time, money, or effort into a failing course of action in the hope of reversing past losses or achieving future gains, despite evidence suggesting that persisting with the current strategy might not be beneficial. This phenomenon often occurs in decision-making scenarios where the decision maker faces a choice between abandoning a losing strategy and further committing to it, with the hope that increased investment will eventually yield positive outcomes.

A Common Decision Dilemma That Can Feature Escalation of Commitment