What is escalation of commitment? Explain.
Escalation of commitment refers to staying with a decision even when there is clear evidence it is wrong. Individuals escalate commitment to a failing course of action when they view themselves as responsible for the failure. People who carefully gather and consider information consistent with the rational decision-making model are more likely to engage in escalation of commitment than those who spend less time thinking about their choices.
They are more likely to have invested so much time and energy into making their decisions that they have convinced themselves they are taking the right course of action and do not update their knowledge in the face of new information.