Definition: Irrational escalation is a phenomenon in which people continue to invest more and more resources into a situation, even when it is clear that the situation is not going to yield a positive outcome. This behavior is often driven by a desire to avoid losses or to “win” a situation, even when it is clear that the situation is not going to yield a positive outcome.
Examples: One example of irrational escalation is when a person continues to invest in a failing business venture, despite the fact that the venture is not likely to turn a profit. Another example is when a person continues to invest in a relationship that is clearly not working, despite the fact that the relationship is not likely to improve.
Effects: Irrational escalation can have a number of negative effects. It can lead to financial losses, as people continue to invest resources into a situation that is not likely to yield a positive outcome. It can also lead to emotional distress, as people continue to invest time and energy into a situation that is not likely to yield a positive outcome. Finally, irrational escalation can lead to a sense of frustration and helplessness, as people feel like they are unable to control the situation.
Do you want to expand your knowledge on this topic? Read our full in-depth article on cognitive biases.
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