Define Escalation of Commitment. Why Does It Occur

question 62

Essay

Define escalation of commitment. Why does it occur?

Understand the concept of promissory estoppel and its application in employment law.

Identify and describe the nature of implied contracts in the employment context.

Comprehend the calculation and purpose of front pay and back pay in employment disputes.

Recognize the legal implications of punitive damages in employment law.

---

Definitions:

Exchange of Goods

The act of giving one item of value in return for another, especially in a commercial context.

Market Failures

Occur when the market does not allocate resources efficiently on its own, leading to a loss of economic welfare.

Government Role

The activities undertaken by a government, including regulation, taxation, and public services provision, to guide and support the economy.

Economic Profits

The surplus after all costs, including opportunity costs, have been subtracted from total revenues.