The Revealed Preference of Porch Pirates
Environmental and Urban Economics
APRIL 4, 2021
A case study about petty crime. A risk neutral thief will steal if the expected benefits are greater than the expected cost. The expected cost of theft (for those without a guilty conscience) equals the probability of detection multiplied by the $ punishment if caught. The expected benefits depend on what the person steals. What is the resale value of the object?
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