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Suppose that doping is inefficient: it harms the rest of society $30,000 more than it benefits the athlete. Every athlete that is caught doping is
Suppose that doping is inefficient: it harms the rest of society $30,000 more than it benefits the athlete. Every athlete that is caught doping is banned from participating in future events. The social cost of this is $80,000 per athlete caught. The league is considering implementing a new $70,000 drug testing procedure to detect doping. This would increase detection from 5% to 15%, and it would decrease the number of dopers in the league from 13 to 9
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