Understanding Escalation of Commitment: Why We Keep Making Bad Decisions

The Biased Brain Podcast with Owen Hawthorne

Explore the intriguing world of cognitive biases and human cognition in this engaging podcast. Discover how bias in decision making shapes our perceptions and influences our choices. Join us as we delve into the science behind critical thinking and biases, providing practical insights to enhance your understanding and control over your thought processes. Whether you're a psychology student or curious observer, this podcast offers valuable tools to help you unveil the hidden biases in your mind.

Why We Keep Betting on Losing Horses: The Escalation of Commitment Effect

Hey, imagine you’re at a carnival, and you’ve dropped a bunch of quarters into one of those rigged games – you know, the kind where the odds are seriously against you. But for some reason, you keep feeding in more money, thinking, “This time’s gotta be the time!” Sound familiar? Well, that’s a classic example of a psychological trap called the escalation of commitment. It’s one of those fascinating quirks of human cognition where you commit more and more resources—time, money, or effort—to a decision even when evidence says you probably should quit.

So, why do we do this? Why does our brain keep us glued to losing bets or bad decisions? It boils down to some pretty powerful cognitive biases that mess with our ability to think critically and objectively. You ever heard of the sunk cost fallacy? It’s closely related. The idea is, because you’ve already "invested" something in a choice, you feel compelled to keep going to justify that investment, even if continuing is a bad idea.

This escalation of commitment effect can play out in all sorts of everyday situations:

• Relationships: Staying in a toxic relationship because of the years you’ve already spent together.
• Work Projects: Keeping a failing project alive just because of the budget and hours already thrown at it.
• Financial Decisions: Pouring more money into a losing stock, hoping it’ll rebound.

From a human cognition perspective, our brains are wired to avoid admitting failure. It’s emotionally uncomfortable to say, "Wow, I made a mistake and wasted time or resources." Because of this, we unconsciously bias our decisions and keep “throwing good money after bad.”

What’s interesting (and a bit ironic) is that this effect is a clear example of how bias in decision making happens even when we believe we're being logical and rational. The brain tends to rationalize why continuing makes sense, even when common sense screams otherwise.

There’s also a social side to it. Sometimes, we escalate our commitment because of how others will view us. Think about quitting a project at work. Would it make you look indecisive or like a failure? Image and ego play their roles here, too.

But here's the kicker — all of this ties right back to understanding cognitive biases and recognizing how our biased brain influences choices. Becoming aware of the escalation of commitment effect can be a game-changer in both personal and professional life. When you can spot it in action, you have a better shot at stepping back, reassessing your options calmly, and hopefully making a smarter call.

There’s actually an excellent resource that unwraps this and many other cognitive biases in a really accessible way — The book, "The Biased Brain" by Bo Bennett, PhD. It’s packed with insights on how our minds play tricks on us and how to improve our critical thinking and biases awareness to make better decisions.

So next time you feel stuck in a losing situation and your gut says, “Just one more try,” pause for a moment. Ask yourself, “Am I really making a smart choice? Or am I caught in the escalation of commitment trap?”

Understanding this effect is a great step toward freeing yourself from some of the less helpful tendencies of human cognition. Why keep throwing good time or resources after bad decisions when you can learn to spot biases, check yourself, and change course?

If you want to explore more psychological quirks like this and get to know why your brain sometimes tricks you, I highly recommend checking out The Biased Brain. It’s an eye-opening guide that can help you unravel the secrets of your mind and improve how you think and decide every day. Explore the book and unravel the secrets of your mind today!

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