Define escalation of commitment. Why does it occur?

What will be an ideal response?

Escalation to commitment is the tendency of decision makers to invest additional time, money, or effort into what are essentially bad decisions or unproductive courses of action that are already draining resources.

Escalation of commitment occurs for several reasons. First, decision makers do not want to admit to themselves or to other people they have made a mistake. Second, decision makers erroneously believe that an additional commitment of resources is justified, given how much has already been spent, and that it may help to recoup some of the losses. Third, decision makers have a tendency to take more risks when they view decisions in negative terms rather than positive terms.