What is escalation of commitment?

Escalation of commitment refers to the tendency of individuals or organizations to continue investing in a decision or course of action even when faced with negative outcomes or contrary evidence that suggests the decision may not be favorable. This behavior often stems from psychological factors such as the desire to avoid admitting failure, the hope that circumstances will improve, or a reluctance to abandon a course of action after significant resources have already been allocated.

In practice, escalation of commitment can manifest in various scenarios, such as continuing to fund a failing project, persisting in an unproductive staffing strategy, or remaining loyal to an underperforming product line. This phenomenon can lead to poor decision-making and wasted resources since individuals may ignore or downplay negative feedback in favor of justifying their initial choices.

The other options articulate behaviors and concepts that do not accurately capture the essence of escalation of commitment. Debating two choices involves weighing alternatives rather than sticking to a single decision. Changing one's mind based on new information reflects adaptability, which is contrary to the idea of escalation. Reevaluating past strategies implies a critical assessment that could lead to changes in direction, which again contrasts with the steadfastness characteristic of escalation of commitment.