Transcription of Certainty of Punishment versus Severity of …
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Certainty of Punishment versus Severity of Punishment : An Experimental Investigation Lana Friesen, School of Economics Discussion Paper No. 400, October 2009, School of Economics, The University of Queensland. Australia. Full text available as: PDF- Requires Adobe Acrobat Reader or other PDF viewer Abstract Compliance with laws and regulations depends on the expected penalty facing violators. The expected penalty depends on both the probability of Punishment and the Severity of the Punishment if caught. A key question in the economics of crime literature is whether increasing the probability of Punishment is a more effective deterrent than an equivalent increase in the Severity of Punishment . This paper uses laboratory experiments to investigate this issue, and finds that increasing the Severity of Punishment is a more effective deterrent than an equivalent increase in the probability of Punishment .
Certainty of Punishment versus Severity of Punishment: An Experimental Investigation Lana Friesen, School of Economics Discussion Paper No. 400, October 2009, School of Economics, The University
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