Re:The optimal amount of fraud is non-zero
by mlyle on Saturday September 03, 2022 @12:28PM
(#32703440)
> I guess this can all fit within a “marginal cost” explanation though.
Yes, but it undermines the first point, a bit. There's costs-- direct and social costs-- to making transactions hard; so perhaps optimal for a society is still not 0.
Also, there's nothing to say that the amount of fraud is stable and that we can't find a world where we have better mechanisms to reduce it for the same cost. (Improved technology, legal structures, norms, etc).
Yes, but it undermines the first point, a bit. There's costs-- direct and social costs-- to making transactions hard; so perhaps optimal for a society is still not 0.
Also, there's nothing to say that the amount of fraud is stable and that we can't find a world where we have better mechanisms to reduce it for the same cost. (Improved technology, legal structures, norms, etc).