In Chapter 11 of the Bauer and Erdogan text, we learned about decision biases. O

In Chapter 11 of the Bauer and Erdogan text, we learned about decision biases. One of the biases is called an “Escalation of Commitment.” Write a two page informative essay that describes escalation of commitment and the impact that it has within an organization. Use an example to illustrate escalation of commitment. You may use an example from your own personal experience or you may write about an example of escalation of commitment that you have learned about by reading a case study, magazine, or newspaper article. The following URL provides an overview of the history of a now bankrupt retail chain in the United States called Steve and Barry’s University Sportswear. (http://steveandberrys.com/) As you read the article, you can see how the managers of this organization were caught in a problem of escalation of commitment. Their decision to locate their stores within financially distressed malls obviously was not working, yet they continued to do this financing each store with incentives from their mall property owners, which only served to drive the company deeper in debt to the point that the company failed in bankruptcy and liquidation. For a humorous look at escalation of commitment I can think of no better example than the gambler in figure 11.9 in your text:
The gambler keeps making the same mistake, putting more money in the slot machine, purchasing the next lottery ticket in the hope to recover losses incurred.