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In a certain city center parking space is rare. Parking legally is costly and parking illegally at a risk is possible. Parking legally costs an
In a certain city center parking space is rare. Parking legally is costly and parking illegally at a risk is possible. Parking legally costs an amount t>0. Parking illegally does not cost anything upfront but there is a probability p>0 of being caught which leads to a fine f>t>0. In order to decrease the number of illegal parkers, the city is considering two alternatives: doubling the fine or doubling the controls (i.e. the probability p). Assuming that the illegal parkers are risk averse, which is a better way to go
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