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 defence.
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. When decision makers have a strong need to justify their decisions, they may feel compelled to continue investing in a failing project to avoid admitting that their original decision was flawed. Uncertainty about the costs of ending a project can also make it difficult to justify cutting losses. When people screen out negative information, they may only see evidence that supports their initial decision, leading them to continue investing even if it's not rational. Finally, research has shown that people tend to dislike losing a particular amount more than they like gaining the same amount, which can cause them to continue investing in a failing project in the hopes of recouping their losses.

Escalation of Commitment Is More Likely to Occur When