Which of the following best defines escalation of commitment?
A)the tendency to invest in a project when it offers increasing returns over a period of time
B)the tendency of employees to increase productivity at work when provided with incentives
C)the tendency of employees to quit an organization when their needs are being disregarded
D)the tendency to continue to invest in a project despite mounting evidence that it is not succeeding

Question

Quizplus · Accepted Answer

Escalation of commitment is the tendency to continue investing resources, time, and effort into a failing project, even when there is mounting evidence of its failure. This behavior is driven by the desire to justify prior investments and avoid losses, regardless of the rationality of investing further. Option A describes the behavior of a rational investor, while options B and C describe different phenomena unrelated to escalation of commitment.

Which of the Following Best Defines Escalation of Commitment