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<p>On the contrary, neighborhood watch is just a way of doing things, not a part of a system. My friend was applying to NIH for an internship and I was cited as a contact. They indeed asked me about my friend, his honesty, integrity, etc. If Penn wanted / cared, they would also conduct their due diligence.
Also, your example of guy ripping people off is a VERY complex question. If you make an accusation, you have the preponderance of compelling evidence burden or else the person sues you for slander/libel. Do you care to do that?
You say Penn is overburdened with applications in defense of due diligence. Lets consider this:
It is common knowledge that Penn (as all other top, exclusive schools) is reluctant to accept more than a few people from a given high school. Thus, everyone applying there is in direct competition with you. You then have an incentive to lie to adcom about a grievance your fellow applicant(s) are not reporting (in the absence of legal consequence). If we accept this system, it is infinitely more burdensome for Penn to investigate all allegations.</p>
<p>I can hear you offer the argument: if claim was proven false, person who made it should be rejected. “Hey Bill, I know you aren’t applying to Penn so can you please claim Jimmy exploits his President status in Honors Society to grope men?” --see where I’m going?</p>
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Economic analysis, game theory. I’m not talking about drug use. I’m talking about competition for a limited resource. </p>
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a big part of the OP’s decision would be his own state of mind as to why he is doing it. If he truly finds it morally objectionable enough that it rises to the level of a reportable offense, then he is morally obligated to do it. I think it is, because it is fraud that harms another potential admit. If he doesn’t, then he should let it go.
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Addressing the deleted part of the above paragraph serves no purpose for my argument (because as I disclaimed, it was a flawed example anyway) so lets discuss this part. </p>
<p>At least we agree on something. Except I called this the intangible benefit of reporting and asked the OP to weigh this option against the risks of suit and obligations to prove his allegations.</p>