Should there be Jail Time for Deceptive Cadence?
Jeremy Denk notes the crisis spreading:
In what is now a familiar story, Lee Ellen Jo Public, of Loma Vista Boca Loca, AZ, found herself at a piano recital, where the pianist had just concluded the exposition of the G major Schubert Sonata. Having invested some 7 minutes of very serious listening, she felt she could not abandon the equity she had built up, even though the prospect of paying off the rest of the development and recapitulation was daunting. Fellow audience member Ronald McGrumpy was much less sympathetic. "After the first two bars, I said to myself, are you kidding me, what kind of sucker do you think I am, I’m not going to stick around and wait for Schubert to develop that. If she got caught upside down on this deal, it’s her fault and her fault alone." Commenter Claude D., mainstay of the well-regarded financial blog Prelude to the Afternoon of a Fund, suggests many people are wondering whether to accept the damage to their listening credit and walk out. "Now, you see, Mozart’s solution to this problem, which is introducing a new theme in the development, carries its own risks; but Mozart seems to think you should look at the crisis as an opportunity and innovate your way out."
Someone (Tyler Cowen, of course) needs to teach Lee Ellen about sunk costs, sharpish.
Reprinted from Portfolio.com