Punishment Menus and Their Deterrent Effects: An Exploratory Analysis

Abstract

Conventional wisdom suggests that allowing offenders to choose alternative sanctions to a previously existing punishment cannot enhance deterrence, because offenders can simply select the least costly option available. We experimentally test whether people may perceive punishment menus as more deterrent than stand-alone sanctions available within the same menu. Our results suggest that this is possible, and that changes in people’s perceptions are often mediated by the mindset (e.g., calculative, ethical) they adopt to evaluate punishment schemes as well as their impressions of the seriousness of the illegal act.

Keywords: Behavioral economics, calculative mindset, ethical mindset, economics of crime, punishment menu

JEL Classification: K1, K10, K14