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In: Operations Management

Highlight the concept of deterrence and its its three essentials with example?

Highlight the concept of deterrence and its its three essentials with example?

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Expert Solution

The concept of deterrence states that one party can use threats as a means to prevent another party from initiating a course of action. This threat acts as a deterrent in a way that it convinces the other party that if it initiates a course of action, the costs and losses it will have to bear will be higher than the gains that might happen.

The three essentials of deterrence are:

  • Certainty : This factor makes the recipient to believe that its actions will not go unpunished if it initiates the undesirable course of action. This is the first step for deterrence to work successfully. For example, if a criminal is caught for murder, and law states that he be given life imprisonment, it must be made certain that all such criminals who are convicted, are actually given the punishment. Then only it will deter the other criminals from committing murder in the future.
  • Celerity : This factor outlines the swiftness with which the threats are carried out in case of undesirable actions by the other party. For example, the faster the convicted criminals are punished and cases are closed, the better the law acts as a deterrence for the criminals.
  • Severity : This is very important factor for deterrence and it makes the other party fear the punishment and prevents it from doing undesirable and unwanted actions. The severity outlines the degree of punishment as a deterrent for unwanted actions. For example, if the punishment for a crime is 3 years jail term in one country, and it is 5 years for the same crime in another country, the 5 years is a more severe deterrent and hence the fear of punishment will be higher in this case.

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