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The investment model of commitment, originally described by Caryl E. Rusbult, is a predictive psychological theory that aims to explain why people remain in relationships. Its tenants are based primarily on those of interdependence theory , created by Harold Kelley and John Thibaut . [ 1 ]
Rusbult’s Investment Model of Commitment Processes is one of the most well-known and influential theoretical frameworks in the area of close relationships. This model explains how committed partners maintain and promote their relationships by transforming personal motives to take into account the necessity of coordinating and getting along ...
The investment model of commitment processes [22] [23] The model of communal (and exchange) orientations (in close relationships) [24] The empathy–altruism model (explaining altruism and prosocial behavior) [25] Realistic conflict theory (applied to intergroup processes) [26] The dual-concern model (applied in the domains of negotiation and ...
The investment model proposed by Caryl Rusbult is a useful version of social exchange theory. According to this model, investments serve to stabilize relationships. The greater the nontransferable investments a person has in a given relationship, the more stable the relationship is likely to be.
Image source: The Motley Fool. Lowe's Companies (NYSE: LOW) Q4 2024 Earnings Call Feb 26, 2025, 9:00 a.m. ET. Contents: Prepared Remarks. Questions and Answers. Call Participants
The traditional investment model often prioritizes financial returns above all else. However, a growing number of investors recognize their money can be a force for good, too.
Escalation of commitment is a human behavior pattern in which an individual or group facing increasingly negative outcomes from a decision, action, or investment nevertheless continue the behavior instead of altering course. The actor maintains behaviors that are irrational, but align with previous decisions and actions.
Image source: The Motley Fool. Realty Income (NYSE: O) Q4 2024 Earnings Call Feb 25, 2025, 2:00 p.m. ET. Contents: Prepared Remarks. Questions and Answers. Call ...