Non-Rational Escalation of Commitment:
On any given day individuals have to make decisions that commit them to a particular course of actions in the pursuit of their desired goals. Since few goals in life are achieved through smooth sailing; unexpected and unfavorable circumstances commonly arise during such pursuits. Such eventualities force upon the goal-seeker the need to make decisions on the next course of action. Non-rational escalation of commitment can be described as the tendency of an individual or group to escalate their commitment to a previously selected course of action beyond the rational model of decision making.
A common case of non-rational escalation of commitment is observable in a determined gambler after he loses money. Prior to leaving his home and heading to his preferred gambling spot, the gambler is full of the excitement and anticipation of winning. A gambler maybe convinced they have devised a dependable system to win and might even carefully budget his bets before hitting their favorite gambling casino or track. He usually sets out...
Surprisingly, such mentally rehearsed plans are quickly abandoned when he actually begins to lose his hard earned money (Dawson, 2009).
The likelihood of an individual to escalate his commitment tends to increase with this level of actual and perceived costs. It seems that non-rational escalation is sparked by the experience of painful loss and the determination to justify previous expenditures by pressing on to a profitable end. Once a gambler commits resources to winning, all such expenditure is considered their sunk cost. To the gambler loss of sunk costs is more readily acceptable while they are calmly planning at home than when adrenaline is rushing through their veins at the betting table. At the table acceptable losses are no longer justifiable, winning is the only option as the sunk cost suddenly seems an unbearable loss. The gambler subconsciously shifts his state from wanting to win within a specific limit to having to win at any cost.
The sunk cost…
