T6 Milner- Understanding and changing people's behaviour

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Last updated 4:16 PM on 6/5/26
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how can law enforcement costs be factored into the hunters profit maximisation formula?

hunters try to maximise the formula pH - cE - sigmaS, which includes:

  • maximising revenues- profit (p) per unit of harvest (H)

  • minimising direct costs- cost (c) per unit of effort (E), including opportunity costs

  • minimising enforcement costs- probability (sigma) of receiving a punishment (S)

<p>hunters try to <strong>maximise </strong>the formula <strong>pH - cE - sigmaS</strong>, which includes:</p><ul><li><p><strong>maximising revenues</strong>- profit (p) per unit of harvest (H)</p></li><li><p><strong>minimising direct costs</strong>- cost (c) per unit of effort (E), including opportunity costs</p></li><li><p><strong>minimising enforcement costs</strong>- probability (sigma) of receiving a punishment (S)</p></li></ul><p></p>
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how can law enforcers reduce illegal exploitation based on the hunters profit maximisation formula?

  • in terms of reducing rhino poaching, the only really successful method to reduce illegal activity was dehorning the rhinos, reducing the expected revenue

<ul><li><p>in terms of reducing rhino poaching, the only really successful method to reduce illegal activity was dehorning the rhinos, reducing the expected revenue</p></li></ul><p></p>
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