WHEN SUCCESS BREEDS FAILURE - THE ROLE OF SELF-EFFICACY IN ESCALATINGCOMMITMENT TO A LOSING COURSE OF ACTION

The search for individual differences relevant to behavior in escalati on situations has met with little success. Continuing the search, this study investigated self-efficacy judgments as a potentially important individual difference in escalating commitment to a losing course of action. Predictions derived from self-efficacy theory suggest that sel f-percepts of high efficacy would exacerbate the economically irration al escalation bias whereas self-percepts of low efficacy would diminis h it. These predictions were consistently supported in this laboratory study where business students responded to decision dilemmas in which funds had been committed to a failing course of action. Theoretical a nd practical implications of these findings are drawn for the escalati on and self-efficacy literatures. (C) 1997 John Wiley & Sons, Ltd.