Mookherjee, Dilip; Png, I P L - In: Journal of Political Economy 102 (1994) 5, pp. 1039-66
The authors characterize optimal enforcement in a setting in which individuals can select among various levels of some activity, all of which are monitored at the same rate but may be prosecuted and punished at varying rates. For less harmful acts, marginal expected penalties ought to fall short...