What type of decisions are likely affected by the escalation of commitment?

The escalation of commitment refers to the phenomenon where individuals or groups continue to invest in a decision despite evidence suggesting that it may be a poor choice. This is often driven by a desire to justify prior investments, whether of time, money, or resources.

When it comes to decisions involving prior investments, the tendency to escalate commitment can be particularly strong. Individuals or groups may feel compelled to stick with a decision not because it is the right course of action moving forward, but rather because they want to honor the efforts already made or the resources already allocated. This often leads to further investment in failing projects, as people are reluctant to "surrender" their earlier commitments.

In contrast, unilateral decisions made quickly may not involve deep consideration of prior investment, as they often require immediate action without extensive deliberation. Similarly, group decisions with clear consensus typically benefit from broad agreement and clear rationale, making escalation of commitment less likely. Immediate decisions with low stakes also do not usually involve significant prior investments, which reduces the motivation to continue pursuing an unpromising course of action. Thus, the choice involving prior investments most clearly captures the essence of escalation of commitment.