Why we double down on bad decisions instead of cutting our losses
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Quick Summary
Increasing your investment in a failing situation to justify past decisions, even when evidence shows it is not working.
What Is It?
Escalation of commitment is when you keep investing more time, money, or effort into something that is clearly failing, just to justify what you have already put in. It is like doubling down on a bad bet, staying in a career you hate because you have already spent years training for it, or continuing a failing project because "we have come too far to turn back now."
Real-Life Example: The College Major
Raj has studied engineering for 3 years. He hates it. Every day feels like torture. But he thinks: "I've already spent 3 years and so much money.
I can't quit now. " So he continues, becomes an engineer, and spends the next 10 years unhappy in a job he never wanted. The truth? Those 3 years are gone whether he continues or not.
But he could save the next 40 years of his career.
How to Recognize It
β¨ What Gets Unlocked When You Overcome This
When you break free from escalation of commitment, you gain the wisdom to know when to cut your losses. You stop throwing good money after bad. You can admit "This is not working" without feeling like a failure - because having the courage to stop is success. You redirect your energy toward opportunities with actual potential instead of dying ventures.
You save years by recognizing negative feedback early instead of escalating until you hit rock bottom. Your self-respect grows because you value smart decisions over ego protection. Most importantly, you realize that changing course is not quitting - it is adapting. Each "failed" attempt taught you something valuable, and now you are using that wisdom to choose better paths.
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Deep Dive
Comprehensive exploration for deeper understanding
Understanding the Impact
Short-term
You avoid the discomfort of admitting you made a wrong choice. You don't have to face the awkward conversation of quitting or changing direction.
Long-term
You waste years or decades on the wrong path. You build resentment and regret. Your unhappiness grows every year. You miss opportunities that were actually right for you.
In 10 years, you'll wish you had quit today.
The Psychology Behind It
Escalation happens because admitting failure threatens your ego and self-image. Each additional investment becomes another reason to continue - you are not just justifying the original decision, but now all the follow-up decisions too. This creates a cycle: invest β see negative results β feel need to justify β invest more β worse results β even stronger need to justify β escalate further. Your brain uses "commitment consistency" - once you publicly or privately commit to something, you feel pressure to stay consistent with that commitment, even when circumstances change.
Organizations are especially prone to this - nobody wants to be the person who "gave up" on a project, so everyone keeps escalating to avoid taking blame.
At the Subconscious Level
Your ego is deeply invested in being "right" about your initial decision. Each time you escalate, your subconscious thinks: "Just a little more and it will pay off. " The escalation trap tightens - the more you invest, the harder it becomes to walk away. " So it keeps pushing you to escalate further, always believing the next investment will finally vindicate all previous ones.
Indirect Effects
- β’You become bitter and jealous of people who made different choices
- β’Your enthusiasm for life decreases because you're stuck in something you hate
- β’People around you feel your unhappiness but don't understand why you won't change
- β’You might pressure others to make the same choice to justify your own
- β’You stop exploring new interests because you're "too invested" in the current path
Related Topics

The mental discomfort of holding contradictory beliefs
That uncomfortable feeling when your actions contradict your beliefs, forcing your brain to either change what you do or change what you believe.

Why losses hurt more than equivalent gains feel good
Losing $100 feels roughly twice as bad as gaining $100 feels good. Your brain weights losses more heavily than gains, driving risk-averse and sometimes irrational behavior.

Why we throw good money after bad
The sunk cost fallacy is continuing something because you have already invested time, money, or effortβeven when continuing makes things worse. You cannot get sunk costs back, but you keep investing to justify past investment.
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