Market Power

Musings by an academic economist on the power of markets and the power over markets.

Saturday, March 05, 2005

What's your Opportunity Cost of Robbery?

Many years ago, I used to work for Walgreens at the mall in Sioux City, Ia. After work one Friday evening, I walked with my assistant manager down the hall of the mall to put the day's revenue into the bank. Since it was late on Friday, my manager had to put the money in a big metal deposit box. Managers of other stores had done the same thing, and the box had envelopes sticking out of the drawer. My manager said "Look at all that cash. We could take some of it and skip town, but that would be stupid. We'd just get caught and would be in big trouble." In other words, the marginal benefits of stealing the cash were far outweighed by the expected marginal costs.

Apparently Larry Ned, formerly of the Arizona Cardinals, didn't think as my manager did.

Thanks to the Eclectic Econoclast for the pointer.