Buy custom Marginal Deterrence is one of the most important messages from the economics of crime. Explain the role of marginal deterrence and its practical applicability
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The concave line shows the criminal is risk averse, but a straight line (criminal is risk neutral) or a convex line (criminal is a risk lover) could also be used in the argument. If a crime is committed then the criminal can either be at points A or B. At point A the criminal is 100% certain to be caught, and so their punishment in monetary value (L) is deducted from her wealth (W), and receives a utility of U(W-L)...
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The concave line shows the criminal is risk averse, but a straight line (criminal is risk neutral) or a convex line (criminal is a risk lover) could also be used in the argument. If a crime is committed then the criminal can either be at points A or B. At point A the criminal is 100% certain to be caught, and so their punishment in monetary value (L) is deducted from her wealth (W), and receives a utility of U(W-L)...
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