Escalation of commitment. occurs when individuals continue on a failing course of action after information reveals this may be a poor path to follow. It is sometimes called sunk costs fallacy because the continuation is often based on the idea that one has already invested in this course of action.

What causes escalation of commitment?

Escalation of commitment occurs because of psychological factors. Unilateral escalation paradigm is triggered by perceptual and judgemental biases, as well as impression management. Competitive escalation paradigm is explained by competitive irrationality.

Why does non rational escalation of commitment occur?

The three critical causes for our tendency to escalate commitment are that when we make an initial commitment to a course of action, commitment: 1. biases our perception and judgement, 2. leads us to make irrational decisions to manage the impressions of others, and 3.