Escalation of commitment is more likely to occur when
A)the costs of ending the project are high or unknown.
B)the decision maker screens out negative information about the decision due to perceptual defence.
C)the decision maker has a strong need to justify their decision.
D)The decision maker dislikes losing a particular amount more than he/she likes gaining the same amount.
E)all of these conditions exist.

Question

Quizplus · Accepted Answer

Escalation of commitment is more likely to occur when the costs of ending the project are high or unknown, the decision maker screens out negative information about the decision due to perceptual defence, and when the decision maker has a strong need to justify their decision. Additionally, the decision maker's preference for avoiding losses over acquiring gains (known as loss aversion) can also contribute to escalation of commitment. Therefore, all of these conditions need to exist for escalation of commitment to occur.

Escalation of Commitment Is More Likely to Occur When