Escalation of commitment is more likely to occur when:
A)the decision maker has a strong need to justify their decision.
B)the costs of ending the project are high or unknown.
C)the decision maker screens out negative information about the decision due to perceptual defense.
D)the decision maker dislikes losing a particular amount more than he/she likes gaining the same amount.
E)all of these conditions exist.

Question

Quizplus · Accepted Answer

All of these conditions can contribute to escalation of commitment. The decision maker may feel a need to justify their initial decision, even if it turns out to be flawed, which can lead to ignoring negative information about the project. Additionally, if the costs of ending the project are high or unknown, the decision maker may feel pressured to continue investing in the project in order to avoid losing previous investments. Lastly, the decision maker may dislike losing a certain amount of money more than they like gaining the same amount, which can contribute to a decision to continue investing in a failing project.

Escalation of Commitment Is More Likely to Occur When