Project: Escalation of Commitment in (managerial...
Master data
Escalation of Commitment in (managerial) investment decisions – Does thinking in a foreign language reduce the sunk cost effect? | |
Description: | With this project we aim to analyze the impact of a foreign language on escalation of commitment due to the sunk cost effect, i.e., the tendency to remain committed to a failing course of action and to allocate further resources to the course of action despite negative feedback. We conduct an online experiment to investigate whether decision-makers who use a foreign language when making investment decisions are less susceptible to this specific case of cognitive biases as compared to decision-makers who are presented the decision-situation in their native language. Based on prior research on this so called Foreign Language Effect we expect individuals using a foreign (native) language to engage in a more (less) deliberate mode of thinking and in more (less) systematic processing, to experience more (less) cognitive and psychological distance, to be less (more) emotional, and act less (more) intuitively. For our experimental study, we use a case study based on the seminal research on escalation of commitment by Staw (1976) and a thereto connected online-survey. |
Keywords: | Decision making, cognitive bias, investment decisions, escalation of commitment |
Short title: | Sunk cost effect and FLE |
Period: | 21.09.2021 - 31.12.2022 |
Contact e-mail: | - |
Homepage: | - |
Employees
Employees | Role | Time period |
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Alexandra Rausch (internal) |
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Assignment
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Fakultät für Wirtschafts- und Rechtswissenschaften
Institut für Unternehmensführung Abteilung für Controlling und Strategische Unternehmensführung
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Categorisation
Project type | Research funding (on request / by call for proposals) |
Funding type | §27 |
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Gender aspects | Genderrelevance not selected |
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working groups | No working group selected |
Funding
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Verein zur Förderung des Instituts für Wirtschaftswissenschaften
Organisation: Verein zur Förderung der Wirtschaftswissenschaften der Alpen-Adria Universität Klagenfurt |
Cooperations
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Projects | No related projects |
Publications | No related publications |
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