The Influence of Budget Goal Attainment on Risk Attitudes and Escalation.

Key Points

• This research aims to determine how achieving budget goals affects individuals' risk-taking behavior in project investments.
• Participants were assigned to groups based on budget goal attainment.
• Analysis focused on investment decisions and project escalation relative to bonus-based compensation.
• The study explored the relationship between effort duration and project escalation.
• Individuals not achieving budget goals made significantly riskier investment decisions.
• The analysis highlighted a positive correlation between duration effort and project escalation.
• Bonus-based compensation influenced risk attitudes, leading to escalated project investments.