Question: Consider a crime that, if committed, would impose a harm of $ 1 0 0 on the victim. Suppose that there are two potential offenders:

Consider a crime that, if committed, would impose a harm of $100 on the victim. Suppose that there are two potential offenders: Adam and Bob. Adam gains $40 from committing the crime, while Bob gains $80 from committing the crime. Assume that the probability of apprehension and conviction is fixed at 0.5.
Is it efficient for either of the offenders to commit the crime? [ Select ]["Yes.","No."]
Suppose the fine is set equal to the actual harm of $100.(Think of Hammurabi's Code"An eye for an eye.")
Will Adam commit the crime? [ Select ]["Yes.","No."]
Will Bob commit the crime? [ Select ]["Yes.","No."]
What is the optimal harm-based fine? f*= $[ Select ]["20","25","40","50","80","100","160","200"]
Given the optimal harm-based fine, will Adam commit the crime? [ Select ]["Yes.","No."]
Given the optimal harm-based fine, will Bob commit the crime? [ Select ]["Yes.","No."]

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