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While doing a background check on a candidate who is superbly qualified for the sales job for which he has applied, you learn that he was dishonorably discharged from the U.S. Army. When you ask him about it, he explains that he was 18 years old at the time, and the death of his father, whom he had only recently met, had a devastating impact on him. He began to drink to excess, often failed to report to his duty station. After his dishonorable discharge, he righted himself, started working, and got counseling. Everyone at your firm who has interviewed him found him to be very personable, and very able, and they're eager for him to start. You've told them about the dishonorable discharge, and it's made no difference to their decision. Should you tell other employees about the dishonorable discharge?
Special-Interest Effect
A phenomenon where policy decisions are disproportionately influenced by small, well-organized groups at the expense of the larger public interest.
Concentrated Benefit
Concentrated benefit refers to situations in economic policy where a particular policy's benefits are received by a relatively small, identifiable group, while the costs are diffused across a large group.
Principal-Agent Problem
An economic conflict where an individual (the agent) has the responsibility to act for the benefit of another party (the principal), but might fail to do so because of differing interests.
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