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  • 1.  Escalation of Commitment Exercise

    Posted 03-06-2009 09:14
    Dear Colleagues,
    Does anyone have an exercise demonstrating escalation of commitment that could be used in a large class? I've thought about using one of the experimental scenarios, but they seem a bit cumbersome for this purpose.
     
    Thanks in advance.
     
    Bruce

    Bruce M. Meglino
    The <st1:placename w:st="on">Moore</st1:placename> <st1:placetype w:st="on">School</st1:placetype> of <st1:placename w:st="on">Business</st1:placename>
    <st1:placetype w:st="on">University</st1:placetype> of <st1:state w:st="on">South Carolina</st1:state>, <st1:place w:st="on"><st1:city w:st="on">Columbia</st1:city>, <st1:state w:st="on"> SC</st1:state> <st1:postalcode w:st="on">29208</st1:postalcode></st1:place>
    Voice: 803.777-5970; Fax: 803.777-6876
    http://mooreschool.sc.edu/moore/mgmt/profiles/meglino.htm



  • 2.  Escalation of Commitment Exercise

    Posted 03-06-2009 14:12
    A good one is what we used to call the "Vietnam dollar exercise."  See http://en.wikipedia.org/wiki/Dollar_auction

    Larry


    On Fri, Mar 6, 2009 at 8:13 AM, Meglino, Bruce <meglino@moore.sc.edu> wrote:
    Dear Colleagues,
    Does anyone have an exercise demonstrating escalation of commitment that could be used in a large class? I've thought about using one of the experimental scenarios, but they seem a bit cumbersome for this purpose.
     
    Thanks in advance.
     
    Bruce

    Bruce M. Meglino
    The Moore School of Business
    University of South Carolina, Columbia, SC 29208
    Voice: 803.777-5970; Fax: 803.777-6876
    http://mooreschool.sc.edu/moore/mgmt/profiles/meglino.htm




  • 3.  Escalation of Commitment Exercise

    Posted 03-06-2009 14:31

    Hi Bruce,

     

    The dollar auction works really well. Basically, it runs the same as an auction but with one additional rule: the last two bidders have to pay their last bid to the auctioneer, and only the highest bidder wins the dollar bill (you can obviously scale this to a larger denomination). What virtually always happens is that the second to last bidder will try to outbid the last bidder in hopes of actually getting the dollar, and two people get stuck into a self-imposed competition where both go far beyond the value of the "prize" for which they are bidding. I personally do not hold the bidders to paying up, as long as they think they will have to it works. It leads to a nice discussion of how escalation occurs. It is unfortunately quite easy to find current examples in the news to make it all too real.

     

    Good luck,

    Roger

     

     

    Roger C. Mayer

    Professor of Management

    The <st1:place w:st="on"><st1:placetype w:st="on">University</st1:placetype> of <st1:placename w:st="on">Akron</st1:placename></st1:place>

    <st1:place w:st="on"><st1:city w:st="on">Akron</st1:city>, <st1:state w:st="on">OH</st1:state>  <st1:postalcode w:st="on">44325-4801</st1:postalcode></st1:place>

     

    (330) 972-8236

    Rmayer@uakron.edu

     

     

    From: <st1:personname w:st="on">Organizational Behavior Division Listserv</st1:personname> [mailto:OB@AOMLISTS.PACE.EDU] On Behalf Of Meglino, Bruce
    Sent: Friday, March 06, 2009 9:14 AM
    To: OB@AOMLISTS.PACE.EDU
    Subject: Escalation of Commitment Exercise

     

    Dear Colleagues,

    Does anyone have an exercise demonstrating escalation of commitment that could be used in a large class? I've thought about using one of the experimental scenarios, but they seem a bit cumbersome for this purpose.

     

    Thanks in advance.

     

    Bruce

    Bruce M. Meglino
    The <u1:placename u2:st="on"><st1:placename w:st="on">Moore</st1:placename></u1:placename> <u1:placetype u2:st="on"><st1:placetype w:st="on">School</st1:placetype></u1:placetype> of <u1:placename u2:st="on"><st1:placename w:st="on">Business</st1:placename></u1:placename>
    <u1:placetype u2:st="on"><st1:placetype w:st="on">University</st1:placetype></u1:placetype> of <u1:state u2:st="on"><st1:state w:st="on">South Carolina</st1:state></u1:state>, <u1:place u2:st="on"><u1:city u2:st="on"><st1:place w:st="on"><st1:city w:st="on">Columbia</st1:city></st1:place></u1:city>, <u1:state u2:st="on"><st1:state w:st="on">SC</st1:state></u1:state> <u1:postalcode u2:st="on"><st1:postalcode w:st="on">29208</st1:postalcode></u1:postalcode></u1:place>
    Voice: 803.777-5970; Fax: 803.777-6876
    http://mooreschool.sc.edu/moore/mgmt/profiles/meglino.htm



  • 4.  Escalation of Commitment Exercise

    Posted 03-06-2009 15:36
    Hi Bruce,
     
    The Dispute Resolution Research Center through Kellogg has a teaching exercise demonstrating escalation of commitment called "Day Care Task Force." The link to get the CD with the materials is below:
     
     
    Hope that helps!
     
    Sheli Sillito
    Organizational Leadership & Strategy
    Marriott School of Management, BYU
    581 TNRB, Provo, UT 84602
    801-422-8747
    From: Organizational Behavior Division Listserv [OB@AOMLISTS.PACE.EDU] On Behalf Of Mayer,Roger C [rmayer@UAKRON.EDU]
    Sent: Friday, March 06, 2009 12:30 PM
    To: OB@AOMLISTS.PACE.EDU
    Subject: Re: Escalation of Commitment Exercise

    Hi Bruce,

     

    The dollar auction works really well. Basically, it runs the same as an auction but with one additional rule: the last two bidders have to pay their last bid to the auctioneer, and only the highest bidder wins the dollar bill (you can obviously scale this to a larger denomination). What virtually always happens is that the second to last bidder will try to outbid the last bidder in hopes of actually getting the dollar, and two people get stuck into a self-imposed competition where both go far beyond the value of the "prize" for which they are bidding. I personally do not hold the bidders to paying up, as long as they think they will have to it works. It leads to a nice discussion of how escalation occurs. It is unfortunately quite easy to find current examples in the news to make it all too real.

     

    Good luck,

    Roger

     

     

    Roger C. Mayer

    Professor of Management

    The University of Akron

    Akron, OH  44325-4801

     

    (330) 972-8236

    Rmayer@uakron.edu

     

     

    From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.PACE.EDU] On Behalf Of Meglino, Bruce
    Sent: Friday, March 06, 2009 9:14 AM
    To: OB@AOMLISTS.PACE.EDU
    Subject: Escalation of Commitment Exercise

     

    Dear Colleagues,

    Does anyone have an exercise demonstrating escalation of commitment that could be used in a large class? I've thought about using one of the experimental scenarios, but they seem a bit cumbersome for this purpose.

     

    Thanks in advance.

     

    Bruce

    Bruce M. Meglino
    The Moore School of Business
    University of South Carolina, Columbia, SC 29208
    Voice: 803.777-5970; Fax: 803.777-6876
    http://mooreschool.sc.edu/moore/mgmt/profiles/meglino.htm



  • 5.  Escalation of Commitment Exercise

    Posted 03-06-2009 16:42
    Dear Bruce
    In my experience, the dollar auction suggested by Larry Pate is a very good way to demonstrate escalation and I would like to share a potential problem that has to be managed when you run the exercise.

    The auction may stop at $1 if the first bid is something like 99c or $1. To avoid this, I get someone to start the bidding at 30c. You may even have a few shills in the class who put in a range of bids at the beginning to get the process going.

    As part of the debrief, I ask what would have happened if the first bid had been 99c? If the cost benefit is made clear before the emotions of the bidding process kick in, people are more likely to act rationally, which is a nice lesson.
    Bob



    _________________________
    Robert Wood
    Professor & Director
    Accelerated Learning Laboratory
    Australian School of Business
    UNSW, Sydney 2052 NSW
    Australia
    Telephone +61 2 9931 9190
    email: rwood@agsm.edu.au


     

    -----Organizational Behavior Division Listserv <OB@AOMLISTS.PACE.EDU> wrote: -----

    To: OB@AOMLISTS.PACE.EDU
    From: Larry Pate <larry.pate@GMAIL.COM>
    Sent by: Organizational Behavior Division Listserv <OB@AOMLISTS.PACE.EDU>
    Date: 03/07/2009 06:11AM
    Subject: Re: Escalation of Commitment Exercise

    A good one is what we used to call the "Vietnam dollar exercise."  See http://en.wikipedia.org/wiki/Dollar_auction

    Larry


    On Fri, Mar 6, 2009 at 8:13 AM, Meglino, Bruce < meglino@moore.sc.edu >   wrote:
    Dear Colleagues,
    Does anyone have an exercise demonstrating escalation of commitment that could be used in a large class? I've thought about using one of the experimental scenarios, but they seem a bit cumbersome for this purpose.  
    Thanks in advance.  
    Bruce


    Bruce M. Meglino
    The Moore School of Business
    University of South Carolina, Columbia,  SC 29208
    Voice: 803.777-5970; Fax: 803.777-6876
    http://mooreschool.sc.edu/moore/mgmt/profiles/meglino.htm