The author presupposes perfect knowledge. Take my precious role where the head of the IT department squandered a year's budget on some half baked reporting system cooked up by a big player in corporate data systems.

Now to the outsider this may have looked like stupidity at the time, but it was actually banditry according to this analysis, since the IT manager was getting foreign golf vacations paid for entirely by the company selling in their half baked reporting system.