Escalation of commitment has been linked to losses in information systems （IS） projects. Understanding the nature and the rationality of escalation allows the firm to promote optimal project management practices. Th...Escalation of commitment has been linked to losses in information systems （IS） projects. Understanding the nature and the rationality of escalation allows the firm to promote optimal project management practices. This study takes an inter-disciplinary approach and draws on research from economics and management to create a model of irrational escalation and a model of rational escalation. The forces that contribute to irrational escalation include the responsibility of the same manager for both the project selection and project continuation decisions that create proneness to self-justification, the potential for negative framing of decision options due to large sunk costs, the proximity of project completion and the presence of organizational inertia. Identifying these irrational escalation factors helps design appropriate de-escalation techniques. The rational escalation model draws on the real option theory and the bandit process theory to identify conditions when project continuation is justified by the value of information and the value of flexibility that the firm receives from continuing the project.展开更多
It is known that the one-dimensional nonlinear heat equation ut ： f（u）x1x1, f＇（u） 〉 0, u（±∞, t） ： u, u＋ ≠ u- has a unique self-similar solution u（x1/√1＋t）. In multi-dimensional space, （x1/√1＋t...It is known that the one-dimensional nonlinear heat equation ut ： f（u）x1x1, f＇（u） 〉 0, u（±∞, t） ： u, u＋ ≠ u- has a unique self-similar solution u（x1/√1＋t）. In multi-dimensional space, （x1/√1＋t） is called a planar diffusion wave. In the first part of the present paper, it is shown that under some smallness conditions, such a planar diffusion wave is nonlinearly stable for the nonlinear heat equation： ut -△f（u） = 0, x ∈ R^n. The optimal time decay rate is obtained. In the second part of this paper, it is further shown that this planar diffusion wave is still nonlinearly stable for the quasilinear wave equation with damping： utt ＋ ut - △f（u） = 0, x ∈ R^n. The time decay rate is also obtained. The proofs are given by an elementary energy method.展开更多
文摘Escalation of commitment has been linked to losses in information systems （IS） projects. Understanding the nature and the rationality of escalation allows the firm to promote optimal project management practices. This study takes an inter-disciplinary approach and draws on research from economics and management to create a model of irrational escalation and a model of rational escalation. The forces that contribute to irrational escalation include the responsibility of the same manager for both the project selection and project continuation decisions that create proneness to self-justification, the potential for negative framing of decision options due to large sunk costs, the proximity of project completion and the presence of organizational inertia. Identifying these irrational escalation factors helps design appropriate de-escalation techniques. The rational escalation model draws on the real option theory and the bandit process theory to identify conditions when project continuation is justified by the value of information and the value of flexibility that the firm receives from continuing the project.
基金Acknowledgements He＇s research is supported in part by National Basic Research Program of China （Grant No. 2006CB805902）. Huang＇ research is supported in part by National Natural Science Foundation of China for Distinguished Youth Scholar （Grant No. 10825102）, NSFC-NSAF （Grant No. 10676037） and National Basic Research Program of China （Grant No. 2006CB805902）.
文摘It is known that the one-dimensional nonlinear heat equation ut ： f（u）x1x1, f＇（u） 〉 0, u（±∞, t） ： u, u＋ ≠ u- has a unique self-similar solution u（x1/√1＋t）. In multi-dimensional space, （x1/√1＋t） is called a planar diffusion wave. In the first part of the present paper, it is shown that under some smallness conditions, such a planar diffusion wave is nonlinearly stable for the nonlinear heat equation： ut -△f（u） = 0, x ∈ R^n. The optimal time decay rate is obtained. In the second part of this paper, it is further shown that this planar diffusion wave is still nonlinearly stable for the quasilinear wave equation with damping： utt ＋ ut - △f（u） = 0, x ∈ R^n. The time decay rate is also obtained. The proofs are given by an elementary energy method.
