Thursday, November 15, 2012

Chili powder vs robber with a gun!

Good morning everyone! We have discussed in the past the increase in criminal behavior which is a consequence of the existing economic condition worldwide. As more and more people find themselves falling below the poverty level, some turn to illegal activities in order to compensate for their loss of income. In fact I was watching the news the other day and I was surprised to see that certain stores constitute regular targets for robbers. There are plenty of examples of store that have been hit repeatedly over the past few weeks. Convenience stores are especially susceptible to robberies. The fact of the matter is though, that convenience store owners are so tired of getting robbed that they have become specialists in thwarting potential criminals.

Would you prepared to defend your store if you were asked to hand all your money at gunpoint? Well, just like people find themselves in a desperate position so as to turn to robberies, victims are also desperate enough so they find the courage to defend themselves against crime. An example of this was witnessed in Massachusetts where a convenience store owner found a new innovative weapon to defend against a gunned robber.
Let me tell you, finding the courage to throw chili powder in the eyes of a man who was holding a gun reveals that the owner was desperate not to get robbed.

Would you hand over your wallet if you were robbed at gunpoint? Some people would, some others would be prepared to fight. In fact we can argue from an economic perspective that people with high marginal utility of money (people who value money more are usually in lower income groups) will fight and  people with lower marginal utility of money will hand over their wallets.

What would YOU do?

Have a nice weekend!

3 comments:

  1. The more your needs the more expose you are to danger. Some have high utility to let go when involve their life as expectation behind geting it back is high. While some have very low utility to let go having thougth about how long it took them to acquire such item. Though some out of the two categories might do otherwise. In the case of former some are naturally stingy and sturborn so they have degree of responsiveness (in the form of aggresiveness)to reduction in their wealth. While some in the latter might be thinking about their love ones at the same time be scared to be hurt. Such people will prefare to colapse as he/she is surrending his/her precious items.

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    1. That is correct my friend! That is why I said that people with high marginal utility of money "usually" fall in the lower income groups. Other factors may also come into play as you correctly pointed out, however, our ceteris paribus assumption is limited to the average rational agent. Good comment!

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  2. If there are 3 gun magazine writers telling their readers that their particular brand or caliber or gizmo is the best, then there will be 4 others saying that the gun in question will get the reader killed.

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