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Are you one of those people who gets mad if you don't get a job offer after the 3rd interview because they were just stringing you along and wasting your time? Because that was their ulterior motive. Wasting your time. They had nothing better to do because they picked their candidate out already. Yessiree. Just waste your time and avoid all of the work piling up around them just so they could inconvenience you.
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Plenty of organizations DO do this. It isn't about wasting your time; it's about maintaining the appearance that they are making an opportunity available to a pool. Sometimes they have a policy of advertising positions and allowing people to interview, but it's all a charade because they have an internal candidate all picked out. Academic departments are notorious for doing this.
And isn't this problem the reason why release figures came into NPC rush? Because popular houses were inviting women back just as "insurance" in case their top picks said no, or to make their parties look full? The NPC had to step in and stop the houses from stringing people along.
I'm not saying that that is what's going on at the houses the OP is talking about. But it really is not so ridiculous that an organization would string people along for their own purposes.
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Avandia Class Action Settlement