escalation of commitment

Escalation of commitment occurs when individuals or organizations continue to invest time, money, or effort into a decision or project despite evidence suggesting it’s unlikely to succeed. This often happens because they want to justify their previous choices or avoid admitting mistakes. Instead of recognizing the decline or failure, they double down, hoping for a better outcome, which can lead to greater losses. Understanding this tendency helps in making more rational decisions, by recognizing when to reevaluate or abandon failing pursuits rather than persisting out of commitment.