Investor's Intrinsic Motives and the Valence of Word-of-Mouth in Sequential Decision-Making
An escalation of commitment refers to an individual’s decision to engage in greater risk-taking following prior losses than gains. This behavior was found to be preeminent in situations framed as portfolio decisions. However, there is lack of evidence regarding the underlying mechanism behind an individual’s decision to engage in later high (or low) risk-taking in a loss (or gain) domain. A model