What term describes a manager continuing to allocate additional resources to a failing project simply because significant resources have already been invested?

Explanation

• Escalation of Commitment (also known as the Sunk Cost Fallacy) occurs when decision-makers persist with a failing course of action despite negative feedback.
• Managers often escalate commitment to justify prior decisions and avoid admitting failure publicly or internally.
• Rational decision-making evaluates future marginal costs and benefits rather than unrecoverable past costs.