Escalation of Commitment. Cognitive Escalation Factors and Counteraction through Behavioural Controlling

Saskia Spang

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Bachelor Thesis from the year 2021 in the subject Business economics - Controlling, grade: 1.3, University of Applied Sciences Fra...

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Bachelor Thesis from the year 2021 in the subject Business economics - Controlling, grade: 1.3, University of Applied Sciences Frankfurt am Main, language: English, abstract: Escalation of commitment refers to the circumstance that a decision taken is being held on despite of negative feedback. Within this thesis, the focus is on managerial decisions about investments that are continued despite poor prospects of achieving set objectives and the possibility of abandonment. The paper addresses cognitive escalation factors as a cause of escalation of commitment and presents the state of the literature and research on countermeasures through behavioural controlling in the company context.