I’m not convinced the social cost is low, and I’m not convinced for shoplifting either; hence the ‘arguably’. I think insurance fraud, though, is often quite a lot like shoplifting? You’re getting something for free from a large company, they have budgeted based on a non-zero amount of it, the costs are spread across all their customers, risk of death to anyone is very low, etc.
Insurance fraud has low social cost? Explain?
I’m not convinced the social cost is low, and I’m not convinced for shoplifting either; hence the ‘arguably’. I think insurance fraud, though, is often quite a lot like shoplifting? You’re getting something for free from a large company, they have budgeted based on a non-zero amount of it, the costs are spread across all their customers, risk of death to anyone is very low, etc.