Stigma and Crime: Sociological Insights

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Questions and Answers

What happens to the stigma associated with an action if one extra person engages in that action?

The stigma associated with the action increases.

The stigma becomes irrelevant.

The stigma associated with the action falls. (correct)

The stigma does not change.

What is the impact of having an extra free-rider in relation to expected stigma?

Expected stigma remains constant regardless of participation.

Expected stigma decreases leading to unravelling of participation. (correct)

Expected stigma increases leading to more participants joining.

Expected stigma fluctuates without influencing participation.

How can the stigma effect influence crime rates?

It has no impact on crime behavior.

It can either decrease crime or incentivize it, depending on social norms. (correct)

It only increases the likelihood of crime among communities.

It solely encourages adherence to social norms against crime.

What is suggested about the stability of the point associated with income and indifference?

It is inherently unstable. Signup and view all the answers

What likely happens when an individual who does not engage in crime is part of a group where crime has a positive stigma?

The incentive to commit a crime increases due to positive stigma. Signup and view all the answers

What is one strategy mentioned for reducing crime?

Increase the probability of being caught Signup and view all the answers

What type of data is ideal for testing the rational choice model?

Microeconomic data from before and after crimes Signup and view all the answers

How does the model suggest crime is committed?

When utility gain exceeds expected loss Signup and view all the answers

What approach is commonly used for testing the rational choice model in macrodata?

Analysis of broader crime statistics over time Signup and view all the answers

What does behavioural economics reject about economic agents?

Their decisions are affected by others' decisions Signup and view all the answers

What may need to be done when models are not supported by data?

Alter the model or start anew Signup and view all the answers

Which aspect is NOT considered a factor in the decision-making model related to crime?

The influence of economic downturns Signup and view all the answers

What is a potential problem highlighted in collecting microeconomic data for the rational choice model?

Offenders are less likely to participate in surveys Signup and view all the answers

What is the primary assumption about individuals in Becker's model of crime?

Every individual is a potential criminal. Signup and view all the answers

In expected utility theory, what does the term 'payoff' refer to?

The outcome based on certain probabilities. Signup and view all the answers

What must occur for an individual to choose to commit a crime according to the model?

The utility from committing the crime must outweigh the utility of not committing it. Signup and view all the answers

What role does probability play in the decision-making process described by Becker?

Probabilities may be subjective and impact expected utility. Signup and view all the answers

What does the expected utility associated with committing a crime depend on?

Both the payoff if successful and the fine if unsuccessful. Signup and view all the answers

What is the 'utility gain from crime' referring to in the context of Becker’s model?

The difference in utility between committing a crime and not committing one. Signup and view all the answers

Which outcome occurs with probability (1-p) when committing a crime?

Imposing a fine if the crime is unsuccessful. Signup and view all the answers

What is one of the main considerations in expected utility theory when analyzing uncertain decisions?

Decision-makers evaluate expected payoffs and risks associated with their choices. Signup and view all the answers

What is the relationship between the probability of getting away with a crime and the likelihood of committing it?

Increasing the probability of getting away raises the likelihood of committing crime. Signup and view all the answers

How does wealth affect the probability of committing a crime if marginal utility is constant?

Wealth has no effect on the probability of crime. Signup and view all the answers

What can be concluded about risk averse individuals in relation to committing crimes?

Their likelihood of committing crimes is ambiguous. Signup and view all the answers

What is a hassle in the context of decision-making?

Any cost associated with making a decision Signup and view all the answers

What needs to be true for crime to be committed based on the expected gain?

The expected gain must be greater than the expected fine. Signup and view all the answers

Why might a student choose not to apply for a bursary even when there is a potential reward?

The perceived hassle exceeds the expected monetary gain Signup and view all the answers

If marginal utility is falling, how are risk averse individuals likely to behave regarding crime?

They may commit crimes but will have a lower likelihood than risk loving individuals. Signup and view all the answers

Which of the following correctly reflects the impact of increasing fines on crime probability?

Increasing fines will decrease the probability of crime. Signup and view all the answers

In the context of the hassle model, what does 'p' represent?

The probability of a successful application Signup and view all the answers

What is indicated if the first term in analyzing crime gain is negative?

Risk averse individuals have a lesser likelihood of committing crime. Signup and view all the answers

How does uncertainty affect a student’s willingness to claim a refund?

It reduces the perceived value of the refund Signup and view all the answers

What is the condition for a student to decide to apply for a bursary based on the hassle model?

pB > H Signup and view all the answers

How does the combination of marginal utilities compare to given marginal utility when considering wealth's impact on crime?

A linear utility function indicates wealth has no effect. Signup and view all the answers

What might influence the level of hassle experienced by different students?

The student’s income and background Signup and view all the answers

What psychological factor is linked to the hesitation in making claims?

Uncertainty aversion Signup and view all the answers

What type of utility loss is involved in applying for a bursary?

Utility loss from filling out forms Signup and view all the answers

What happens when the subjective probability of success increases with income?

Students from higher income groups are more likely to apply. Signup and view all the answers

In the stigma model, what occurs if a large number of individuals are claiming benefits?

There is no stigma associated with claiming benefits. Signup and view all the answers

What determines the decision to join a union versus free-riding according to the provided model?

The expected utility from free-riding compared to the utility gain from joining. Signup and view all the answers

In case (i), when benefits are increasing and costs are falling, what is the expected outcome?

Higher income individuals are likely to apply. Signup and view all the answers

According to the stigma model, what is an example of a decision influenced by stigma?

Deciding to run a red light. Signup and view all the answers

What factor could result in more applications from lower income backgrounds?

Decreasing benefits accessed by higher income groups. Signup and view all the answers

In complex cases of benefits, when benefits increase first and then decrease while costs increase, what is likely?

The outcome depends on individual circumstances. Signup and view all the answers

What might signify an individual being indifferent between free riding and union membership?

The utility from both choices is equal. Signup and view all the answers

Study Notes

Modelling Economic Decisions

Economic models are constructed using skills in identifying objectives and mathematically maximizing or minimizing the objective function.
First-order conditions may need to be solved to determine if the solution is a maximum.
Decisions can be made under conditions of certainty or uncertainty.
Expected utility theory can be used to analyze uncertain decisions.

EUT: Background

Expected utility theory can be applied to understand various decision scenarios, such as marriage, divorce, and suicide.

Becker's Model of Crime

Becker's model of crime utilizes the expected utility framework.
It's a more comprehensive model than a basic representation of crime.
Links to relevant article are cited.

A Model of Crime

Models assume that all individuals have the potential to commit crime.
Individuals are expected utility maximizers.
Actions are taken to maximize their expected utility.
Actions have associated payoffs which can be certain or uncertain.

Crime

Committing a crime results in a payoff (B) with a probability (p).
Unsuccessful crime results in a fine (F) with a probability of (1-p).
Uncertainty can exist regarding aspects of the decision.
Probabilities of certain events may be subjective and not objective.

Expected Utility Associated with Crime

The expected utility associated with committing a crime is calculated based on assumptions of expected utility theory.
The utility of not committing a crime is a certain utility.

Commit a Crime?

The condition for committing a crime is that the utility gain from committing the crime exceeds the certain utility.
Models refer to the described condition as the rational theory of crime.

Comparative Statics

Partial derivatives of the gain function with respect to arguments like payoff and probability of not being caught are used to analyze changes.
Changes in factors like the fine can reduce the probability of committing a crime.
When analyzing changes from the crime gain function. the payoff/probability components are analyzed.

Wealth

It is more complex to determine how wealth affects the utility gain from crime.
The effect can be determined using a linear combination of marginal utilities.
In some cases, wealth does not impact the probability of crime.

Risk Aversion

If marginal utility is falling, there is risk aversion.
Risk aversion is equivalent to a declining marginal utility.
The first part of the term in the equation is likely negative, as expected monetary gain from crime is above wealth.
The second part of the term is positive and associated with risk averse behaviour.

Another Way to Look at This

The gain from committing a crime is calculated.
The condition for committing a crime is that the gain is positive.
Rearranging the equation to calculate the gain.

Testing the Model

Empirical testing requires microeconomic data.
Ideally, data should be collected before and after the crime.
Macrodata provide a common approach with support for the Becker Model.
Data sets such as the National Child development Survey are referenced.

Extending the Model

The model can be applied to different types of crime beyond monetary gains and losses.
The decision to commit a crime depends on the moment-by-moment maximum utility.
Utility is not limited to a materialist evaluation.

Economics as a 'Magpie' Science

Economics progresses through a continuous process of model building and testing.
Incorrect models need alteration or replacement.
Economists draw ideas from other fields like Psychology and Sociology.

Behavioural Economics

Behavioural economics rejects the simplistic assumption that economic agents act independently.
This assumes interdependence.
Incorporates hassle and stigma factors into models.

Hassle Model

Hassle is the cost associated with performing an action, often non-monetary.
Consider an example of deciding to complete a form to get a refund.
Utility gain from the refund may be less than the perceived hassle of completing the form

Uncertainty Aversion

Uncertainty aversion occurs due to uncertain outcomes, like an unknown refund amount.
Subjective beliefs impact the perceived value of uncertain items.
Uncertainty reduces the value of future gain.

Model (Bursary Application)

Students consider whether to apply for a bursary.
Success probability is "p."
Unsuccess will be (1-p)
Applying for a bursary results in a gain.
The application generates hardship (hassle), regardless of success.
A student will apply if the benefit expected from the application outweighs the hassle.

Stigma Model (Union Membership)

Stigma represents an additional cost of an action.
Factors similar to those in a hassle model are considered.
The stigma effect is endogenous, related to the actions of others.

Model (Free Riding)

Income affects utility (u(x))..
Individuals gain some benefit from a relevant action (B).
There is a probability of being identified for an action (q).
A free rider incurs a stigma cost.
Free riding utility is compared to the non-union wage (U(x)).

Revisiting Crime

Peer effects are a significant factor in crime.
Peer effects are investigated theoretically

Adding Stigma to the Crime Model

The gain from crime includes a potential stigma cost.
The stigma effect depends on social norms.
Negative stigma (breaking a social norm) tends to increase the likelihood of crime
Positive stigma tends to discourage crime.

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Description

Explore the intricate relationship between stigma and crime in this quiz. Delve into how the presence of an additional person engaging in an action can alter the stigma associated with it, and examine the implications for crime rates and group dynamics. Test your understanding of these sociological concepts and their impact on individual behavior.