Escalation of commitment is more likely to occur when the perceived costs of terminating the project are high or unknown.

Question

Quizplus · Accepted Answer

Escalation of commitment occurs when individuals or groups continue to invest resources in a project even when objective evidence indicates that the project is failing. This can happen when decision-makers perceive the costs of terminating the project to be high, or when they are uncertain about what those costs might be. In such cases, they may feel that they have already invested so much time, money, or effort into the project that it would be irresponsible or wasteful to abandon it. This can lead to a kind of cognitive bias in which decision-makers become more committed to the project even as its prospects for success diminish.

Escalation of Commitment Is More Likely to Occur When the Perceived