--- title: "Meaning & Key Takeaway of: escalation of commitment to a losing…" description: "\"“escalation of commitment to a losing course of action. Over the past four decades, extensive research led by Staw shows that once people make an initi..." image: "https://sms4smile.com/quotes/i/094/adam-m-grant-1427_investing_escalation-of-commitment-to-a-losing-cou_813361.jpg" --- # escalation of commitment to a losing course of action… ![“escalation of commitment to a losing course of action. Over the past four decades, extensive research led by Staw shows that once people make an initial investment of time, energy, or resources, when it goes sour, they’re at risk for increasing their investment. Gamblers in the hole believe that…” quote by Adam M. Grant](https://sms4smile.com/quotes/i/094/adam-m-grant-1427_investing_escalation-of-commitment-to-a-losing-cou_813361.jpg) [Download](https://sms4smile.com/quotes/i/094/adam-m-grant-1427_investing_escalation-of-commitment-to-a-losing-cou_813361.jpg) [Open image](https://sms4smile.com/quotes/i/094/adam-m-grant-1427_investing_escalation-of-commitment-to-a-losing-cou_813361.jpg) > ““escalation of commitment to a losing course of action. Over the past four decades, extensive research led by Staw shows that once people make an initial investment of time, energy, or resources, when it goes sour, they’re at risk for increasing their investment. Gamblers in the hole believe that if they just play one more hand of poker, they’ll be able to recover their losses or even win big. Struggling entrepreneurs think that if they just give their start-ups a little more sweat, they can turn it around. When an investment doesn’t pay off, even if the expected value is negative, we invest more. Economists explain this behavior using a concept known as the “sunk cost fallacy”: when estimating the value of a future investment, we have trouble ignoring what we’ve already invested in the past.”” [Adam M. Grant](https://sms4smile.com/quotes/author/adam-m-grant/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. People keep investing in failing projects because past investments bias future decisions, known as the sunk cost fallacy. **In simple terms:** Hard to stop spending on losing ventures. Key Takeaway Recognize and cut losses early. Themes decision making bias economics psychology Mood reflective analytical cautious Type advice psychology business When to use this quote - business planning - personal finance - project management - investment decisions Key Concepts sunk cost fallacy commitment escalation Questions to Reflect On - What investments are you clinging to? - How can you objectively assess future value? A Different Perspective May overlook potential hidden value in continued investment. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Increasing Investment](https://sms4smile.com/quotes/about/increasing-investment-286106/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investment Gamblers](https://sms4smile.com/quotes/about/investment-gamblers-286104/) [Negative Invest](https://sms4smile.com/quotes/about/negative-invest-286105/) [Risk](https://sms4smile.com/quotes/about/risk/) [Risk Increasing](https://sms4smile.com/quotes/about/risk-increasing-286103/) [Sunk Cost](https://sms4smile.com/quotes/about/sunk-cost-286102/) [Time](https://sms4smile.com/quotes/about/time/) ## Related quotes > [“The received wisdom is that risk increases in the recession and falls in booms. 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Gamblers in the hole believe that if they just play one more hand of poker, they’ll be able to recover their losses or even win big. Struggling entrepreneurs think that if they just give their start-ups a little more sweat, they can turn it around. When an investment doesn’t pay off, even if the expected value is negative, we invest more. Economists explain this behavior using a concept known as the “sunk cost fallacy”: when estimating the value of a future investment, we have trouble ignoring what we’ve already invested in the past.”", "creator": { "@type": "Person", "name": "Adam M. 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