Escalation occurs in decision-making when people must decide to further put money into something, or cut losses and move on when the writing is on the wall. There are three classes of explanation when it comes to escalation, and these classes are perceptual biases, judgmental biases, and impression management. Perceptual biases are basically what happen when we’re looking to validate previously made decisions, and causes us to look past information that would let us know our decisions or current objective is wrong. Judgmental biases occur when we take losses, but continue to keep our mindset towards just breaking even, basically saying the further back from breaking even we get the harder we drive to get back to the breakeven point. Impression
