The influence of anticipatory emotions, risk perceptions, and managerial experience on escalation of commitment decisions

Escalation of commitment refers to the tendency of decision makers to continue with failing courses of action (Staw, 1981). Research has identified numerous factors that contribute to escalation, however, there have been relatively few studies exploring ways to reduce this costly mistake. This study investigates the role of anticipatory emotions, risk perceptions, and managerial experience in reducing one's tendency to escalate commitments. Results suggest that anticipatory emotions and managerial experience play a significant role in reducing this decision making error. The findings of this study reveal several important practical and theoretical contributions to the field.