An Empirical Test of Staw and Ross's Prescriptions for the Management of Escalation of Commitment Behavior in Organizations*

Abstract

ABSTRACT This study tests two major prescriptions of Staw and Ross about the management of escalation behavior in organizations. Since these prescriptions are primarily based on research using students in controlled settings, the efficacy of the prescriptions was tested in the context of a real, functioning organization. The results provide conditional support for separating initial decision responsibility from subsequent responsibility as a means of reducing escalation behavior. However, the findings did not support a reduction of project failure risk as a means of minimizing escalation of commitment to a failing course of action.