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> Food is parceled out so a small amount of food bank fraud creates a slightly smaller parcel for everyone, in the case where food is limited.

This makes sense, thanks for actually writing an easy to follow explanation.

> If fraud rates are small, the cost to everyone is trivial; if fraud rates are zero, the costs get piled onto a few unfortunate souls who couldn't pass the test despite actually needing help.

Can you explain how the second follows the first?



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