Reptilian brain · Loss, Risk & Scarcity

Escalation of Commitment

Increasing investment in a failing course of action to justify the original decision — strongest when you made the decision and others know it.

An everyday example

Doubling a marketing budget on a campaign that is not working because you championed it in front of the board.

What it can cost you

Ego-driven persistence; counterparts who make you publicly own a course so you cannot leave it.

Warning signs

  • I am investing to prove I was right.
  • Stopping would mean admitting it publicly.

One thing to do

Set kill criteria before starting, and hand the stop decision to someone who did not make the start decision.

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