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1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

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Escalation of commitment

Risk & psychology
Also called: Escalating commitment

Committing further resources to a failing course of action because withdrawing would require admitting the earlier commitment was wrong.

In plain terms

Each extra rupee is spent to avoid an admission, and enlarges the admission. It is distinct from sunk cost reasoning: the driver is not the money already spent but the social or personal cost of conceding.

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Indian stock market glossary · Market Vidyalaya