Resumen de Escalation of commitment: : when to stay the course?

Helga Drummond

• When an important venture seems to unravel, decision makers may face a dilemma. Do they persist and risk becoming caught up in a spiral of escalating commitment, or �apply the brakes� when they may be within an ace of success? Escalation of commitment is thought to be a ubiquitous and costly mistake. Yet sometimes organizations should �press on the accelerator� and stay the course despite adversity. This paper explores what might drive organizations to erroneously abandon a potentially successful venture.