Too Little Too Late: A Case Study of Escalation in Decision Making

Abstract

This paper examines a city council's persistence with a failing department over a five-year period. The case is an example of escalation of commitment where decision-makers inherit a previously unsuccessful and long established decision as distinct from involvement in an ad hoc venture. It is concluded that the pres sures to escalate in established decisions are different from those previously observed in ad hoc ventures. Escalation in established decisions is cyclical, altern ating between structural and social pressures. Project and psychological factors are secondary. Powerlessness is identified as a new structural variable. It is specu lated that escalation in established decisions may be basically structural. Decision- makers' actions are reminiscent of behaviours observed in previous studies of strategic decision-making.