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Most people view legal market activities, such as buying goods and services, as being in a very different category from illegal activities where violators face penalties. But the distinction between these two categories is not always clear. We drove into town for dinner and parked in what looked like a legal spot on the street. After dinner, we found a parking ticket on our windshield. But I noticed that the fine was 25 pesos per minute about 3 cents per minute. So I looked for one of the numerous men that were writing the tickets. It turns out I was able to pay the modest fine on the spot, and get a receipt shown below. The next couple of nights we again got a parking ticket, and immediately paid it in a similar fashion. What is the essential difference between a crime and an ordinary market transaction? Society often scolds people for committing crimes. But why is one set of activities crimes viewed as wrong, while another set market transactions is viewed as acceptable? If the fine accurately reflects the social cost of your activity, why should we feel guilt about engaging in a crime and paying the price? I suspect that our feeling of outrage regarding some lawbreaking reflects a correct intuition that our criminal justice system frequently does not lead to efficient outcomes. In that case, my breaking the law might be efficient. In that case the expected penalty is. Now consider a case where someone mugs a pedestrian and steals their wallet. Common sense suggests that this is generally not an efficient outcome for society, even if the criminal is poorer than the victim. Crime imposes all sort of other costs. People devote resources to avoiding crime. A mugging is physically and psychologically traumatic. Because muggers are often poor, financial penalties must often be accompanied by prison. A deadweight loss. To summarize, a parking violation is more akin to an ordinary transaction than it is to a typical felony. Parking violations feel a bit different from normal market transactions because the penalty is stochastic. We might pay no penalty at all, or we might pay more than we expected. Each time, a ticket was put on my windshield almost immediately after parking. I came to see the little town of Pucon as being like one giant parking garage. I began viewing it as a normal market transaction. I suspect that the way we think about lawbreaking and penalties has an impact on how we choose to address problems such as externalities. Ideally transactions costs get in the way streets and roads parking or motion would be paid for by users. The comedian Steven Wright has a similar example involving one way streets. We just are less effective than you at charging for parking. Instead of having park meters we have small armies of men charging you when you leave. PPS: I hope you are having a great time in Chile. Thanks for that information—very helpful. Invoice, ticket, they are just words. Thanks for the invitation but this is just a vacation. I think it was 3x the normal ticket price. Which was totally worth it to me, because I didnt want to wait for the next train. We did that in Italy once too. But official came around and the fine really was that-huge. With my minimal Italian, I was able to get it down to just one fine for the four of us, but it was still several times the cost of 4 tickets. In retrospect, I assume the huge fines are there to keep locals from cheating and also to fleece the occasional unsuspecting tourists. I seem to remember an initial fine of 50 Euros a person that was eventually cut to one fine of And this was on a short trip on a regional train. Obligatory joke, Foreign gentleman is sports car was doing in 50 area, and was stopped by the police, who present him with the ticket. A difference on the individual level could be further legal consequences. The mere payment of a bill or a fine are similar transactions from an economic point of view. However, the invoice or fine is paid on the basis of different legal facts, to which other legal consequences beyond the mere payment may also be attached. I have no knowledge of the Chilean legal framework. But real parking violations in other jurisdictions may also result in costly and ardous towing or direct liability for random consequences obstruction of law enforcement, emergency services, fire departments. If the parked vehicle is involved in an accident, it may also matter whether you were allowed to park there or not. On the other hand, implied or explicitly entered legal relationships that normally result in having to pay an invoice may also result in the contracting parties having secondary contractual obligations that go beyond the mere exchange of primary obligations. For example, a private parking lot operator might be obligated to inform parkers of obvious dangers from thieves or leaks of operating fluids; or he might be obligated to prevent drunk drivers from parking in a manner that might be dangerous to other parkers. So there are very different imponderables and risks arising from the different legal frameworks from an individual perspective. Now, one could say that it all depends very much on the specific legal system, whether that makes sense in each case and is welcome or not. And that is exactly my point. Somebody actually had a photo of a sign with that one on it. Reminds me that, my father lived near a beach. It seems every sign around here says something like: 2 hour parking, 8am to 8pm, except Sunday. It seems they mean the latter, but it still makes me nervous. The Schweizer Monat is probably the oldest conservative-libertarian publications in Europe. Perhaps not surprisingly, it is a Swiss-German magazine: Germans seem to be more inclined to keep reading traditional newspapers and books than us Latins. The latest issue is now online, and the website includes the English The principles are the same whether I in Pacific Grove am trading with someone in neighboring Monterey or someone in Mexico, Myanmar, or Morocco. Free trade both within a country and across international borders is what has led to our huge We drove into town Fine for parking? Categories: Economics of Crime Regulation. Read This Article. Thomas Lee Hutcheson Mar 2 at pm. Scott Sumner Mar 3 at pm. J Mann Mar 6 at pm. Felipe Mar 3 at am. Scott Sumner Mar 3 at am. Brandon Mar 6 at am. Ah, thanks Felipe, that also explains the gmail. MarkW Mar 6 at am. MarkW Mar 7 at am. Arqiduka Mar 5 at am. Jens Mar 5 at am. Floccina Mar 7 at pm. On more thing: 25 pesos per minute about 3 cents per minute. Comments are closed. Antifragile children. Read More. Mar 3 Globalization and Its Discontents. Mar 2

Buy hash online in Pucon