Which term describes ignoring warning signs to continue a failing course due to prior investment?

• A. Escalation of commitment
• B. Define the problem
• C. Group polarization
• D. Identify alternatives

Answer: (A)

Escalation of commitment is the tendency to keep pursuing a failing course of action despite clear warning signs, driven by the desire to justify the time, money, and effort already invested. When people have sunk costs tied up in a project, they may fear admitting those investments were wasted, so they continue to pour in resources in the hope of a turnaround, rather than cutting losses. This concept captures why warnings are ignored once a commitment has been made. By contrast, defining the problem is about understanding what needs fixing, group polarization describes groups pushing toward more extreme positions after discussion, and identifying alternatives is about generating different options.