Determining the most effective way to deter deliberate crimes, such as fraud, as opposed to impulsive crimes, such as .
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The explanation of the utility ████████████ █████████ ██ ███ ███████ ████████ ████ █████ ███ ██ ███ █████████ █████ ██ █████ █████████████ █████████ ██ █ ████████ ████████ ██ ████████ ██████████ ███ ██████████████
In order to ██████ ███ ██████ █ ██████ ████████ █ █████ ████ ██ ███ ███ ██████ ████ ███ ██████████ ███████ ██ ████████ ████ ██ ██ ████ ████████ ████ ████ ████ ██ ████████ ███ ██ ████ ██ ██████████
This is a rational response according to the UM principle. The waiter has an incentive to conceal his tip income: he wants to reduce his taxes. And he thinks punishment is very unlikely, so he has little disincentive.
A motorist avoids ████████ ██ █ ███████ ███████ ██ ████ ███████ ███ █████ ████ ██ ██ ███████ █████████ ███ ████ █ ████████ ██████ ████ ████ ██ ████ ██ ███ ████████ ████████
This is a rational response according to the UM principle. The motorist has a strong disincentive to speed, so she avoids speeding.
An industrialist continues ██ █████████ █████████ ██ █████████ █████████ ████ █ █████ ███████ ███ ████ ██ █████████ ███ ███████ ███ ████ ███ █████████ ███████████ ███ ██████████
This is a rational response according to the UM principle. The cost of lawful behavior (treating the pollutant) is greater than the cost of unlawful behavior (not treating it), so the industrialist takes the unlawful action. There’s a greater disincentive to take the lawful action than to take the unlawful one.
A government official ██ ██ ████████████ ███████ █████ ███████████ ███ ██████████ ██████ ███████ ███████ █████████ ███ ████████ ███ ██████████ ██████ ██████████ ██ ███████ ███ ███ ███ ███████
This is a rational response according to the UM principle. The official has a strong incentive for soliciting bribes: her salary can’t support her and her family. To her, this outweighs the disincentive of the risk of prosecution.
A worker physically ████████ ███ ██████ ██████████ ██ █ ███████ █████████ ███████ ██ ███ ████ █████████ ████ ███ ███ ███ ██ ████████ ████ ███ █████████ ███ ███████████ ███ ███████
This isn’t a rational response according to the UM principle. The worker is acting based on notions of fairness, not based on a weighing of the incentives and disincentives of taking an action.