How And Why Companies Benefit From Customers Breaking Rules

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Companies used to impose penalties when customers broke the rules in order to deter that type of behavior. In recent years companies have realized that they can make a profit from the leveraging of fees, just as they can make a profit from customers making bad decisions. This three page paper looks at the way in which companies can benefit from more breaking about decision-making and assesses the advantages and disadvantages of a company in pursuing this type of strategy.