Escalation of commitment occurs when decisions must be made with limited information because decision makers do not have full knowledge and cannot determine even a reasonable probability of alternative outcomes.

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Escalation of commitment refers to the phenomenon where individuals or organizations continue to invest time, money, or resources into a failing decision, project, or course of action due to the substantial resources already committed, rather than because of a lack of information or the inability to determine the probability of outcomes.

Escalation of Commitment Occurs When Decisions Must Be Made with Limited