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Re:One college town's uneasy embrace of drinking by geebee on Monday December 01, 2014 @05:31PM (#8684397)
This is a good observation, and reminds me of an article I read a while back about why the parole system works so poorly (it was a great article, sorry that I don't have the link).

The theory was that much or our criminal law system makes an assumption of a rational actor. A 1% chance of severe penalty would deter a crime where they payoff is minor (i.e.., the small chance of a severely punished DUI would convince a rational actor to call a cab).

But it doesn't appear to work that way. The article suggested that the best way to deter certain types of repeated criminal behavior are consequences that are swift, certain, and measured (in severity). Instead, what we have is slow, random, and severe. Supposedly, that does little to deter crime, but does a great filling up prisons and creating people who have a lifelong criminal history for job applications.

Re:One college town's uneasy embrace of drinking by baddox on Monday December 01, 2014 @06:33PM (#8684780)
Your description of people's reaction to the risk and severity of punishment sounds entirely rational.
Re:One college town's uneasy embrace of drinking by ianferrel on Monday December 01, 2014 @07:42PM (#8685060)
A rational actor would be twice as deterred if you kept the risk of punishment the same and doubled the severity.

But actual people don't respond that way. They respond to the risk rather than the expected punishment.

Re:One college town's uneasy embrace of drinking by droopyEyelids on Monday December 01, 2014 @08:23PM (#8685180)
The problem with this is everyone's definition of Rational Actor is arbitrary in what incentives it excludes or includes. Talking about what a Rational Actor would do makes about as much sense as claiming your opinion is fully objective.
Re:One college town's uneasy embrace of drinking by baddox on Monday December 01, 2014 @09:08PM (#8685297)
In my opinion, the version of rationality that has the most relevance to economic analysis (and should really be the primary definition of the term in economics) is bounded rationality.

http://en.wikipedia.org/wiki/Bounded_rationality

Re:One college town's uneasy embrace of drinking by baddox on Monday December 01, 2014 @08:20PM (#8685166)
You'd probably need to define and use "marginal severity," which unfortunately probably ends up being subjective and difficult to analyze.