economic theory of deterrence

The economic theory of deterrence suggests that people or nations are less likely to commit harmful acts if the costs of doing so outweigh the benefits. By establishing credible threats—like severe punishments or consequences—authorities aim to dissuade unwanted behavior. It's like a cost-benefit analysis: if the potential penalty is high enough, rational actors will choose against the action. This approach relies on predictable enforcement and rational decision-making, emphasizing that deterrence isn't just about punishment but about making the repercussions clear and convincing enough to prevent offenses before they happen.