Yes I know, your least-favorite idea goes here. But seriously, someone must have come up with the concept before. Like a bad get-rich-quick scheme could fall into this category, where joining the scheme makes people lose money and become more desperate, so they become more likely to do desperate things like invest more in the scheme. But it can apply to a number of other bad ideas.
Sounds about right. This keeps happening at my job, executives throwing good money after bad in an attempt to get some return on their investment. If we had just cut our losses years ago we’d be in a much better place now.