Abstract
The phenomenon of originated from decision makers, and is part never encountered by traditional risk control theory. The phenomenon of commitment escalation frequently occurs in decision making of an enterprise, which seriously affects cultural establishment and training of core competition of the enterprise. In order to search for explanatory variables of escalation, authors of this article introduced and cost for examination, employed scenario simulation experiment and the analytical technique of contingency table for a statistic test. The research results indicate that, when faced up with the high level of sunk cost, the decision maker is more likely to choose commitment escalation than when faced up with the low level of sunk cost, no matter the self-esteem level of the decision maker is high or low; when faced up with the same level of sunk cost, the decision maker with high self-esteem level is believed to be much more likely to choose commitment escalation than the one with low self-esteem level.
Highlights
In order to effectively test influences of “self-esteem level” and “sunk cost” on “strength of aspiration of commitment escalation”, here the authors make an analysis of cross tabulation and odds ratio to conduct relevant test
With high self-esteem level, the value of chi-squared statistic is 3.58, and p-value of the test statistics based on Pearson chi-square is 0.048, being significant under the condition of significance of 5%, indicating influence of “sunk cost” on “commitment escalation” is significant with high self-esteem level and verifying conclusion of cross tabulation analysis
By means of scenario simulation, this article has verified the mechanism of action by “sunk cost” and “self-esteem level of decision makers” in the process of generation of tendency of their commitment escalation
Summary
It is a main route for study on commitment escalation to search for new explanatory variables for the phenomenon of “commitment escalation” by decision makers. Stow studied “tendency of commitment escalation”, “strength of commitment escalation” and “degree of self confidence in their subsequent decision” by decision makers when they were faced up with “sunk cost” and “unfavorable news”, which made “sunk cost” become a significantly indispensable variable for study on commitment escalation of decision makers (Stow, 1981). Domestic academics Ren Xulin and Wang Chongming made a comparison of “tendency of commitment escalation” between “enterpreneur” and “managerial personnel” in face of “unfavorable news”, and made an instructive contrastive analysis by presenting the role of “sunk cost” to decision makers of different sorts (Ren Xulin, 2006). The authors will go on with study on “sunk cost” by Stow (1981) and conduct control over it as a primary variable
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
