When commitment to failing projects is perfectly rational
Charging ahead with a plan despite negative feedback has been at fault for failing projects around the world. Nicholas Berente, professor of IT, Analytics, and Operations, along with his co-researchers, studied the reasoning behind project escalation and why failing projects are not abandoned.
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In 1989, the city of Denver devised a plan to replace its old airport with a state-of-the-art facility. The plan famously went awry, costing three times as much as its original budget and running a year and a half behind schedule. The troubled, delayed 1995 opening is an example of the phenomenon known to those in the information technology sector as "project escalation" — the continued, persistent commitment to a failing project.