escalation of commitment Flashcards
1
Q
definition
A
escalation of commitment is the tendency for people to continue to support previously unsuccessful courses of action because they have sunk costs invested in them
escalate commitment: throw good money after bad in order to justify previously made decisions
give up; cut losses and run
2
Q
factors leading to escalation
A
project determinants - size of project’s goal or payoff, availability of feasible alternatives, sunk costs
psychological determinants - optimism / illusion of control, self-justification, framing effects, self-esteem
social determinants - external justification, leadership norms
organizational determinants - institutional inertia
3
Q
avoiding escalation of commitment
A
set limits
avoid tunnel vision
recognize sunk costs
external review
