Given the principles of escalating commitment, in which situation described below would you give the greatest funding to the same program in 1995?
A) After you funded the program in 1993, it turned out to be very profitable.
B) After another manager funded the program in 1993, it turned out to be very profitable.
C) After you funded the program in 1993, it turned out to be a "loser," showing actual prospects of failing.
D) After another manager funded the program in 1993, it turned out to be a "loser," showing actual prospects of failing.

Question

Quizplus · Accepted Answer

The principle of escalating commitment suggests that people are more likely to continue investing in a project, even if it is failing, if they have already invested a significant amount of money in it. This is because they are reluctant to admit that their previous investment was a mistake.

Given the Principles of Escalating Commitment, in Which Situation Described