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Understanding behavior in escalation situations.

B M Staw, J Ross

    Science (New York, N.Y.)
    |October 13, 1989
    PubMed
    Summary
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    Escalation of commitment occurs when individuals and organizations persist with failing strategies. Research identifies project, psychological, social, and organizational factors driving this persistent behavior over time.

    Area of Science:

    • Decision-making research
    • Organizational behavior
    • Social psychology

    Background:

    • Individuals and organizations frequently exhibit persistence in detrimental courses of action, a phenomenon often described as 'throwing good money after bad.'
    • This persistent behavior, known as escalation of commitment, represents a significant challenge in both personal and professional contexts.

    Purpose of the Study:

    • To synthesize over a decade of research on the escalation problem.
    • To identify the key determinants influencing persistent behavior in escalation situations.
    • To propose a dynamic model illustrating the evolution of these determinants over time.

    Main Methods:

    • A comprehensive review of over 10 years of research on escalation of commitment.
    • Analysis of determinants across project, psychological, social, and organizational domains.

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  • Development of a dynamic model to explain the temporal evolution of escalation factors.

    • Main Results:

    • Persistence in losing courses of action is linked to four primary categories of determinants: project, psychological, social, and organizational variables.
    • The interplay of these determinants is not static; their influence changes dynamically over time.
    • These evolving influences contribute to a complex behavioral pattern in escalation scenarios.

    Conclusions:

    • Understanding the multifaceted determinants of escalation of commitment is crucial for mitigating its negative effects.
    • A dynamic model provides a framework for analyzing how various factors contribute to persistent, detrimental decisions over time.
    • Further research can leverage this model to develop interventions aimed at preventing and managing escalation of commitment in individuals and organizations.