Armstrong, J. ScottCoviello, NicoleSafranek, Barbara2023-05-222023-05-221993-06-012006-06-17https://repository.upenn.edu/handle/20.500.14332/39317Escalation bias implies that managers favor reinvestments in projects that are doing poorly over those doing well. We tested this implication in a marketing context by conducting experiments on advertising and product-design decisions. Each situation was varied to reflect either a long-term or a short-term decision. Besides these four conditions, we conducted three replications. We found little evidence of escalation bias by 365 subjects in the seven experimental comparisons.Article