Chapter 7 The Escalation of Commitment
Multiple Choice
1. Which of the following is not likely to produce escalation of commitment?
a. A present state that is below expectations.
b. A present decision that is likely to generate further losses.
c. A present decision that is a result of a previous decision.
d. Past investment of a great deal of resources in a selected course of action.
Ans: b
Response: p. 127-130
2. When deciding whether or not to escalate commitment to a chosen course of action, our choice
should depend on:
a. The expected value of further investment.
b. Our sunk costs.
c. Our initial reasons for choosing that course of action.
d. None of the above.
Ans: a
Response: p. 120-121
3. The tendency to escalate commitment is more pronounced when:
a. The commitment is to a failed decision made by oneself.
b. The failure of the initial commitment can be explained with a causal, unrelated account.
c. The escalation is made by an individual, compared with escalation made by a group. d.
All of the above.
Ans: d
Response: p. 127-130
4. Which is not a good mechanism for protecting oneself from irrational escalation of
commitment?
a. Separating initial decisions from future decisions.
, b. Rotating decision makers between various stages of the process, so that the person who
chose the initial course of action will not be the one choosing whether or not to
continue pursuing it.
c. Identify reasons for justifying the initial course of action, in order to avoid the creation
of cognitive dissonance, which ultimately leads to irrational escalation of commitment.
d. Consider the decision from the perspective of one’s competitors.
Ans: c
Response: p. 127-131
5. Which of the following is a useful advice for a competing party that wishes to avoid competitive
escalation of commitment?
a. Pursue mutual disclosure of intentions between you and your competitor.
b. Make an initial high bid that will discourage the competitor from entering the auction.
c. Do not focus too much on the competitor’s needs and interests, but on your own.
d. Know the expected bidding patterns of your competitor in advance.
Ans: a
Response: p. 125
6. Specific actions of parties engaged in competitive irrationality are:
a. More likely to occur as their commitment escalates.
b. Irrational to the extent that the initial commitment is irrational.
c. Not easily identified as irrational.
d. Rational by definition.
Ans: c
Response: p. 125
7. Which of the following best describes nonrational escalation of commitment?
a. Strong commitment to an idea that was previously chosen.
b. Commitment to a previous course of action beyond the point prescribed by rational
models of decision making.
c. Continuing with a previously chosen course of action when the potential future benefits
outweigh the potential future costs.
d. Commitment to a previously chosen course of action when the expected value of
continuing the project is positive.
Ans: b
Response: p. 121
8. Which of the following is an underlying mechanism of escalation of commitment?
a. The confirmation trap.
Multiple Choice
1. Which of the following is not likely to produce escalation of commitment?
a. A present state that is below expectations.
b. A present decision that is likely to generate further losses.
c. A present decision that is a result of a previous decision.
d. Past investment of a great deal of resources in a selected course of action.
Ans: b
Response: p. 127-130
2. When deciding whether or not to escalate commitment to a chosen course of action, our choice
should depend on:
a. The expected value of further investment.
b. Our sunk costs.
c. Our initial reasons for choosing that course of action.
d. None of the above.
Ans: a
Response: p. 120-121
3. The tendency to escalate commitment is more pronounced when:
a. The commitment is to a failed decision made by oneself.
b. The failure of the initial commitment can be explained with a causal, unrelated account.
c. The escalation is made by an individual, compared with escalation made by a group. d.
All of the above.
Ans: d
Response: p. 127-130
4. Which is not a good mechanism for protecting oneself from irrational escalation of
commitment?
a. Separating initial decisions from future decisions.
, b. Rotating decision makers between various stages of the process, so that the person who
chose the initial course of action will not be the one choosing whether or not to
continue pursuing it.
c. Identify reasons for justifying the initial course of action, in order to avoid the creation
of cognitive dissonance, which ultimately leads to irrational escalation of commitment.
d. Consider the decision from the perspective of one’s competitors.
Ans: c
Response: p. 127-131
5. Which of the following is a useful advice for a competing party that wishes to avoid competitive
escalation of commitment?
a. Pursue mutual disclosure of intentions between you and your competitor.
b. Make an initial high bid that will discourage the competitor from entering the auction.
c. Do not focus too much on the competitor’s needs and interests, but on your own.
d. Know the expected bidding patterns of your competitor in advance.
Ans: a
Response: p. 125
6. Specific actions of parties engaged in competitive irrationality are:
a. More likely to occur as their commitment escalates.
b. Irrational to the extent that the initial commitment is irrational.
c. Not easily identified as irrational.
d. Rational by definition.
Ans: c
Response: p. 125
7. Which of the following best describes nonrational escalation of commitment?
a. Strong commitment to an idea that was previously chosen.
b. Commitment to a previous course of action beyond the point prescribed by rational
models of decision making.
c. Continuing with a previously chosen course of action when the potential future benefits
outweigh the potential future costs.
d. Commitment to a previously chosen course of action when the expected value of
continuing the project is positive.
Ans: b
Response: p. 121
8. Which of the following is an underlying mechanism of escalation of commitment?
a. The confirmation trap.
