Frontiers of Cost-Benefit Calculations
A little more than a year ago, in response to a Wall Street Journal article on airline travelers’ lost luggage, an insightful reader offered a more in depth analysis:
“Airlines lose luggage because there is no incentive to correct the problem. It would cost money to fix the broken systems, and there is no meaningful penalty on airlines that lose baggage because our government allows airlines to pay pennies on the dollar for what is lost. Even worse, the threat of lost luggage actually benefits the airlines by forcing passengers to avoid checking luggage.”
Armstrong, Arthur O. 2007. “Perpetual Curse of Lost Luggage.” Wall Street Journal (27 January): p. A 5.
I have not heard whether or not the paper ever hired this contributor.