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Old Jun 12, 2008 | 5:07 pm
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LAX UA 1K
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Originally Posted by BostonMark
If they pay $50,000 to someone who saves them say $200,000 then yes, it makes sense - that employee is more than paying their way. If the ratio is closer, well then maybe not.
It's hard to quantify the savings. Unfortunately, a certain amount of 'policing' is necessary to deter fraudulent sales of passes (and many other forms of costly behavior). I recall some of the economic literature on this topic and under suitable conditions the least costly enforcement strategy is one which catches violators randomly, fairly rarely, but imposes large penalties when caught (e.g., firing or a large financial penalty).

Charles
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