BazermanMoore

CHAPTER
SIX
The Escalation of Commitment
If at first you don’t succeed, try, try, again. Then quit. No use being a damn fool about it.
—W. C. Fields
In the previous chapters, we examined single decisions and the ways in which judgmental
and motivational biases and the framing of information can influence our responses
to decisions. However, many critical managerial decisions concern a series of
choices rather than an isolated decision. We are prone to a particular type of bias when
approaching decisions serially—namely, a tendency to escalate commitment to our initial
decision. This chapter opens with an explanation of the individual’s tendency to
escalate commitment. In the second section, we show how a competitive environment
increases the tendency to escalate commitment. The third section provides a taxonomy
of explanations for the psychological tendency to escalate and offers recommendations
for eliminating nonrational escalation behavior.
Consider the following examples of situations that invite escalation:
You personally decided to hire a new manager to work for you. Although you had
expected excellent achievement, early reports suggest that she is not performing as
you had hoped. Should you fire her? Her current level of performance may become
a financial drain. On the other hand, you have invested a fair amount in her
training, and maybe she’s just in the process of learning the ropes. You decide to
invest in her success a bit longer and provide additional resources to help her
achieve. Two months later, her performance is still subpar. Although you have even
more reason to ‘‘cut your losses,’’ you also have a greater investment in this
employee. When should you give up on your ‘‘investment’’?
You accept a position with a prestigious consulting firm, believing that the job offers
an excellent career opportunity in a firm that has room for you to grow. Two
years later, you have not progressed as rapidly as you had expected. Anxious to
demonstrate your worth to the company, you decide to invest large amounts of
unpaid overtime to get ahead. Still, you fail to get the recognition you think you
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