Answer:Escalation of commitment The tendency of decision makers to remain committed to a poor decision, even when it leads to increasingly negative outcomes, is called escalation of commitment.

What this term means

Escalation of commitment is when someone keeps “staying the course” on a failing project or decision instead of stopping or changing direction, even though the evidence clearly shows it is not working. People often do this because they have already invested time, money, effort, or reputation and feel compelled to justify those past investments.

Simple example

Imagine a manager who has spent a lot of budget on a new product that is clearly not selling.
Instead of canceling it, they keep adding more money to marketing and development, hoping it will eventually succeed—this is escalation of commitment.

Related ideas

  • Sunk cost fallacy: The mistaken belief that you must continue because you have already invested resources, even though those costs cannot be recovered.
  • “Throwing good money after bad”: A common phrase that describes exactly this behavior of escalating commitment to a failing course of action.

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