| Abstract: | Conlon and Garland (1993) demonstrated that information about the degree of project completion, as compared with information about sunk costs, seemed to be the driving force behind continued investment in an R&D project. In the present paper, we replicate and extend this work. In studies with experienced bank managers, Chinese graduate students, and advanced-level MBA students, we find overwhelming support for the importance of project completion on investment intentions, with no indication of typical sunk cost effects. We argue that our results support a goal substitution explanation for many escalation phenomena where, as progress moves forward on a project, completion of the project itself takes increasing precedence over other goals (e. g., economic profit) that may have been more salient at the time the project was initiated. |
