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 $ on the victim. Suppose that there are two potential offenders: Adam and Bob. Adam gains $ from committing the crime, while Bob gains $ from committing the crime. Assume that the probability of apprehension and conviction is fixed at
Is it efficient for either of the offenders to commit the crime? Select YesNo
Suppose the fine is set equal to the actual harm of $Think of Hammurabi's CodeAn eye for an eye."
Will Adam commit the crime? Select YesNo
Will Bob commit the crime? Select YesNo
What is the optimal harmbased fine? f $ Select
Given the optimal harmbased fine, will Adam commit the crime? Select YesNo
Given the optimal harmbased fine, will Bob commit the crime? Select YesNo
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