Living on the Edge: A Guide to Risky Behavior
A Risk Too Far: Behavioral Economics of Escalating Commitment to a Failing Course of Action
Friday, May 28, 2010,
11:15 AM - 11:40 AM
Back Bay Ballroom C
Why do people persist in failing ventures despite repeated negative feedback? A dynamic escalation model based on data and theory from behavior analysis, economics of uncertainty and equivocality theory explores the perceived irrationality of escalation. Decision-makers facing failure are not necessarily making errors but are adapting to difficult decision dilemmas.
Subject Area: Living on the Edge: A Guide to Risky Behavior