I agree, the Kelly Criterion tells you what size of bet to make. And if the size of the bet you should make is greater than your bankroll (or risk appetite), then logically... you should not make the bet.
And (indeed), this is the exact analogy you're using. If you place bet after bet after bet (ie. doing repeated failed startups), then perhaps you should re-evaluate your bankroll (opportunity cost?) and do something else for a bit.
[I think we're in agreement. I just wouldn't use positive expected value as the argument.]
And (indeed), this is the exact analogy you're using. If you place bet after bet after bet (ie. doing repeated failed startups), then perhaps you should re-evaluate your bankroll (opportunity cost?) and do something else for a bit.
[I think we're in agreement. I just wouldn't use positive expected value as the argument.]