Diffusion of responsibility: Effects on the escalation tendency.

In a laboratory study, the possibility was investigated that group decision making in the initial stages of an investment project might reduce the escalation tendency by diffusing responsibility for initiating a failing project. Support for this notion was found. Escalation effects occurred less frequently and were less severe among individuals described as participants in a group decision to initiate a failing course of action than among individuals described as personally responsible for the initial decision. Self-justification theory was found to be less relevant after group than after individ-ual decisions. Because most decisions about important new policies in organizations are made by groups, these results indicate a gap in theorizing about the determinants of escalating commitment for an important category of escalation situations. Administrators are often reluctant to make major changes in policy, even when confronted with failure. This behavior is con-sistent with studies showing that, when decisions fail, people may cognitively distort the negative consequences to make them appear more favorable instead of changing their behavior (Staw, 1974; Weick, 1964). This cognitive distortion can occur