Project Management Institute

The effect of optimism bias on the decision to terminate failing projects

This research presents the findings from an experiment that invesigated to what extent decision makers suffer from optimism bias when escalating a commitment to failing projects; 345 individuals, involved in project decision making, participated in the experiment. A new form of optimism bias, namely post-project optimism bias, is defined. Post-project optimism is an overly optimistic belief that a project will deliver better business benefits than what was planned or that can be proven. It is further confirmed that both post-project and in-project optimism biases have significant effects on the escalation of commitment to failing projects.
member content locked

Log in or join PMI to gain access

or Join

Advertisement

Advertisement

Related Content

  • Project Management Journal

    Project-As-Practice member content locked

    By Kalogeropoulos, Theodoros | Leopoulos, Vrassidas | Kirytopoulos, Konstantinos | Ventoura, Zoe Researchers have not studied the human side of project managers thoroughly. Decision-making mechanisms lie not only in technocratic knowledge but also in practitioners’ inner cultures and personal…

  • Project Management Journal

    Exploring Decision-Making Complexity in Major Infrastructure Projects member content locked

    By Shi, Qianqian | Hertogh, Marcel | Bosch-Rekveldt, M. G. C. | Zhu, Jianbo | Sheng, Zhaohan The goal of this study is to identify, classify, explore, and understand decision-making complexity elements in major infrastructure projects (MIPs). This article puts forward systematic definitions…

  • Sponsored Research

    Reinventing Megaproject Delivery Models

    By Denicol, Juliano Megaprojects are usually proposed by the public sector as a reflection of the government delivering a new physical asset to address a necessity of the society, improve living conditions, foster…

  • PMI White Papers

    The Impact of the COVID-19 Crisis on Project Business

    By Project Management Institute | Project Business Foundation This is a report on the results of a survey jointly conducted by PMI and the Project Business Foundation. The intention was to replace observations and opinions with reliable data. The mission was…

  • PM Network

    Battle Plan

    By Mustafa, Abid At a time of increasingly complex business problems, it's natural for project teams to turn to war rooms to solve those challenges. The war room concept gathers all key stakeholders and critical…

Advertisement