Resource allocation decisions necessarily involve trade-offs.

If you have ten strawberry plants and a limited amount of water (10L), which do you choose and why?

You could give water equally to the ten plants (rising tide lifts all boats / increase the average by improving all).

You could remove the lowest performers (e.g. Two plants) and redirect the resources you would have given to those, to the others.

Or you could select the top performers and direct most of the resources to those plants – i.e. concentrated benefits, dispersed costs – leaving less water for the other plants.

(This is not a great analogy, because the idea of ‘concentrated benefits, dispersed costs’ is that the awarded few can make great gains, that are distributed for all to enjoy – but nothing similar exists in this analogy).

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