I'd liken this also to Mike Caro's poker concept of the "Threshold of Misery"...Suppose you considered $1,000 a lot of money. Then, mentally, losing $400 is bad, but not as bad as losing $800, but losing $4,000 is roughly just as bad as losing $5,000 despite the fact that the difference is "a lot of money".
The government pretty consistently throws good money after bad.
I'd liken this also to Mike Caro's poker concept of the "Threshold of Misery"...Suppose you considered $1,000 a lot of money. Then, mentally, losing $400 is bad, but not as bad as losing $800, but losing $4,000 is roughly just as bad as losing $5,000 despite the fact that the difference is "a lot of money".
The government pretty consistently throws good money after bad.