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Many liability risks are not passed onto customers. Banks, for instance, if they used your logic, would charge you extra for their own incompetence if they wer
by daniel-cussen 6y ago
Many liability risks are not passed onto customers. Banks, for instance, if they used your logic, would charge you extra for their own incompetence if they were unusually frequent victims of fraud. What happens instead is these industries filter for competence, as table stakes for participating in them.
- baobabKoodaa 6y ago> Many liability risks are not passed onto customers. Banks, for instance, if they used your logic, would charge you extra for their own incompetence if they were unusually frequent victims of fraud. What happens instead is these industries filter for competence, as table stakes for participating in them. Funny that you would choose banking as an example. Banks are in fact very frequently victims of fraud. Despite this, banks are (generally) profitable. Why? Because the cost of fraud is passed on to clients of banks (typically businesses), who pass on the cost to their customers. I mean sure, a bank that is "unusually frequent" victim of fraud will be unable to stay in operation, but a bank that is suffering the "average amount of fraud" will stay in operation just fine and pass those costs onto their clients. In summary, liability risks _are_ passed onto customers, and you are wrong when you claim otherwise.