1. How would a drivers overall wealth influence his or her decision to park illegally? 2. Considering...
Question:
1. How would a driver’s overall wealth influence his or her decision to park illegally?
2. Considering the effect of opportunity cost on the decision to take certain gambles, would you expect wealthy people to park illegally more than less-wealthy people? In addition to the fine and the probability of being punished, what other factors may influence the decision to take an illegal action?
3. Suppose you need to find parking only a few days a month. Does this change the expected value of parking illegally? If not, why might it still affect your decision?
4. From the city’s perspective, if higher fines and more enforcement are equally effective at deterring illegal parking, which option do you think it will prefer? Why? Do you think it is true that both options would be equally effective, or is one method more likely to deter some types of people than others?
Expert Answer:
1 The more wealthier the driver the more likely will he or she be influenced to park illegally If the driver has a massive overall wealth that means t... View the full answer
