Thursday, May 1, 2014

What is the Optimal Penalty?

In Law and Economics we look at a model of criminal behavior that states that the optimal amount of crime is based on a rational criminal weighing the marginal cost of conviction against the marginal benefit of committing a crime.  Here is an article making the case that the marginal cost of being convicted of a "crime" (performance enhancing drug use) is too low and thus baseball players have an incentive to always use PED's.

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