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Principles

Employee of the Month

Glenn approaches Mateo with a request to not award Mateo with employee of the month for a 6th straight month. Glenn recognizes that Kelly may want to transfer stores because she feels unappreciated. Glenn thinks that giving Kelly the award, she may feel better about her situation at the store. Pareto improvements mean no one is made worse off by an action, but Mateo points out that Glenn is taking something from him and giving it to Kelly. This redistribution is common with the use of taxes to redistribute income to others in a society. While not Pareto-improving, it can be used to improve equity.