Escalation of commitment

Escalation of commitment is when you keep investing in a decision because you have already invested a lot—time, money, or effort—even when the evidence suggests you should stop. The past investment feels like a reason to continue, but it cannot be recovered; only the future costs and benefits should matter. Often called the "sunk cost fallacy" in popular use. Related: Sunk cost fallacy.

Examples

• You keep pouring money into a failing project because you've already spent so much, instead of cutting your losses and reallocating resources.

• You sit through a boring film to the end because you've already watched an hour, instead of doing something you would enjoy more.

• A relationship has been unhappy for years, but you stay because you have invested so much time, rather than asking whether the future is worth it.

• You finish a degree you no longer want because you have already completed two years, even though switching would leave you better off in the long run.

• A company keeps funding a product that is not selling because they have already spent millions on development, instead of reallocating to something with better prospects.