The case I had in mind was philantropy, where the $1000 would go to some charitable project. This creates a more difficult situation if you have to hand it back, because you’ve presumably spent it, and not on something that makes you personally stronger. So you are suddenly faced with the potentially-diffocult task of scraping together money to pay back.
I do agree that optimal incentives would weight things inversely to the probability of them getting caught. I’m not sure how necessary perfectly optimal incentives are, since telling your community’s other donors that one of the donors turned out to be a bad actor and now we need a bunch of their money to pay back the bad actor’s victims seems like it would suck.
The case I had in mind was philantropy, where the $1000 would go to some charitable project. This creates a more difficult situation if you have to hand it back, because you’ve presumably spent it, and not on something that makes you personally stronger. So you are suddenly faced with the potentially-diffocult task of scraping together money to pay back.
I do agree that optimal incentives would weight things inversely to the probability of them getting caught. I’m not sure how necessary perfectly optimal incentives are, since telling your community’s other donors that one of the donors turned out to be a bad actor and now we need a bunch of their money to pay back the bad actor’s victims seems like it would suck.