How should we enforce traffic laws? If we were designing a system today, there's no chance we would choose a 0.01% probability of getting caught, matched with a highly unpredictable and sometimes exorbitant fine. Crazy case of path dependence where we could do so much better.

I'm still deeply confused why every town does just set permanent speed cameras and fine everyone going more than 10mph over the limit. You could eliminate speeding and improve safety immediately. 2/

Is the answer that in equilibrium, nobody would speed and police departments wouldn't raise enough money? That would be a wild political economy — the only way to fund the police is to incentivize people to commit some crimes?

@giuseppe_aaron lol