The Research About the Effect of Incentive Compensation Mode to Escalation of Commitment

摘要

This article is based on agency theory and researches the effect of incentive compensation to escalation of commitment by the experiment on all the subjects. The research shows us: incentive compensation mode will influence on the escalation of commitment. When the rewards measure is taken, the escalation of commitment will be aggravated. When the punishments measure is taken, the escalation of commitment will be restrained to some extent. When the rewards and punishments measure is taken simultaneously, the escalation of commitment will no significant change. The found provides a new idea on the control of escalation of commitment.