8.6 In deciding to park in an illegal place, any individual knows that the probability of getting a ticket is p and that the fine for receiving the ticket is / Suppose that all individuals are risk averse (that is, U"(W) < 0, where Wis the individual's wealth).

Will a proportional increase in the probability of being caught or a proportional increase in the fine be a more effective deterrent to illegal parking? [Hint: Use the Taylor series approximation U(W-f) = U(W) - fU'(W) + —U"(W).]