Escalation of commitment refers to the phenomenon where individuals or groups continue to invest time, money, or resources into a failing course of action, despite evidence that it is not achieving the desired outcomes. This tendency can often stem from cognitive biases, such as loss aversion or overconfidence, which lead negotiators to irrationally justify their prior decisions rather than cut their losses. Understanding this behavior is crucial in negotiation, as it can significantly affect decision-making processes and outcomes.
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