Subjective Utility Theory
Economists have long used the subjective utility theory, which assumes that individuals work toward their own self-interests, and attempt to maximize opportunities. Other social scientists have seen the usefulness of this theory for disciplines beyond economics. It can be applied to the study of deterrence:
[I]ndividuals assess the net utility of engaging in a prohibited behavior by weighing the expected gain against the expected punishment, with the latter weighted by the certainty of being caught and discounted by time to receipt of punishment (Schneider & Ervin, 1990, p. 586).
The public at large has “amazing faith” in the idea that criminal behavior will be curtailed if only the law spells out certain and severe consequences (Schneider & Ervin, 1990, p. 586). Schneider and Ervin argue that empirical evidence does not uphold this “faith” as criminals’ behavior seems to operate outside what should be their own self-interests.