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Suppose that in Enigma, Ohio, klutzes have a productivity of $1,000 and kandos have a productivity of $5,000 per month. You can't tell klutzes from kandos by looking at them or asking them, and it is too expensive to monitor individual productivity. Kandos, however, have more patience than klutzes. Listening to an hour of dull lectures is as bad as losing $250 for a klutz and $100 for a kando. There will be a separating equilibrium in which anybody who attends a course of H hours of lectures is paid $5,000 per month and anybody who does not is paid $1,000 per month
American Law Institute (ALI) Rule
A guideline used in some jurisdictions for determining legal insanity, which considers whether a defendant lacks the capacity to understand the wrongfulness of their actions.
Irresistible Impulse Rule
Legal principle stating that even a person who knowingly performs a wrongful act can be absolved of responsibility if he or she was driven by an irresistible impulse to perform the act or had a diminished capacity to resist performing the act.
Insanity Defense Reform Act
A 1984 U.S. federal law that redefined criteria for establishing the insanity defense within federal courts.
Jurisdictions
Defined territories or areas of control where specific rules, laws, or powers are applied.
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