A college has a small discipline problem students


A college has a small discipline problem. Students frequently discharge the water-filled fire extinguishers for fun. Obviously, it is a safety hazard when fire extinguishers are empty. The college's punishment is a $400 fine. Despite this draconian punishment (given college student budgets), the problem continues. One member of the student discipline committee suggest reducing the fine to $25. This idea is adopted. The incidence of frivolous emptying of fire extinguishers on campus drops quickly (with no accompanying rise in arson-to justify emptying a fire extinguisher). Can you explain what might have happened? Discuss the implications for Becker's model in which a low probability of apprehension is optimal.

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Business Economics: A college has a small discipline problem students
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