Question: 5. Recall our rational criminal example using Table 13-3. TABLE 133 The Expected Utility of Crime Higher Probability of Prison Longer Prison Term Less Lower

5. Recall our rational criminal example using Table 13-3. TABLE 133

5. Recall our rational criminal example using Table 13-3. TABLE 133 The Expected Utility of Crime Higher Probability of Prison Longer Prison Term Less Lower Probability of Prison Higher Income Baseline Loot 100 44 0.5 0.36 10 100 44 0.75 0.36 10 100 44 0.5 0.51 10 100 21 0.5 0.36 10 400 44 0.5 0.36 20 100 44 0.25 0.36 10 Lawful income (5) Loot ($) Probability of prison Prison time Lawful utility = (lawful income) Utility from successful crime Net income = Legal income + Loot Utility = (Net income)" Utility from failed crime Prison cost = prison time - legal income Net income = Legal income - prison cost Utility = (Net income)u2 Expected utility from crime (utils) 144 12 144 12 144 12 121 11 444 21 144 12 36 64 8 10 36 64 8 9 51 49 7 9.5 36 64 8 9.5 144 256 16 18.5 36 64 8 11 Consider the higher income example. (Income =$400) A) Calculate the amount of loot needed for Expected Utility from Crime to equal the Lawful Utility. Show your work. B) Now keep loot at 44, but calculate the amount of prison time needed to make the Expected Utility from Crime = Lawful Utility. Show your work. 5. Recall our rational criminal example using Table 13-3. TABLE 133 The Expected Utility of Crime Higher Probability of Prison Longer Prison Term Less Lower Probability of Prison Higher Income Baseline Loot 100 44 0.5 0.36 10 100 44 0.75 0.36 10 100 44 0.5 0.51 10 100 21 0.5 0.36 10 400 44 0.5 0.36 20 100 44 0.25 0.36 10 Lawful income (5) Loot ($) Probability of prison Prison time Lawful utility = (lawful income) Utility from successful crime Net income = Legal income + Loot Utility = (Net income)" Utility from failed crime Prison cost = prison time - legal income Net income = Legal income - prison cost Utility = (Net income)u2 Expected utility from crime (utils) 144 12 144 12 144 12 121 11 444 21 144 12 36 64 8 10 36 64 8 9 51 49 7 9.5 36 64 8 9.5 144 256 16 18.5 36 64 8 11 Consider the higher income example. (Income =$400) A) Calculate the amount of loot needed for Expected Utility from Crime to equal the Lawful Utility. Show your work. B) Now keep loot at 44, but calculate the amount of prison time needed to make the Expected Utility from Crime = Lawful Utility. Show your work

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