If you bought a widget (after careful consideration of its value) for $1.00, and 2 weeks after your purchase it's on sale for $0.80, wouldn't you buy more...?
It you thought it was good value at $1.00, then surely it must be even better value at $0.80 !
Having said this, let me say that many people follow this theory and subsequently lose alot of money because their assessment of the widget's valuation is flawed. They make assumptions of the widget's value based on the behaviour of key earnings variables in the past--- the rear view mirror syndrome. Big mistake!
