Two studies test whether people believe in optimal deterrence. The first pr
ovides people with personal injury cases that are identical except for vari
ations in the probability of detection and explores whether lower probabili
ty cases produce higher punitive damage awards and whether higher probabili
ty cases produce lower awards. No such effect is observed. The second asks
people whether they agree or disagree with administrative and judicial poli
cies that increase penalties when the probability of detection is low and d
ecrease penalties when the probability of detection is high. Substantial ma
jorities reject these administrative and judicial policies. Policy implicat
ions for the role of the jury in achieving deterrence are explored.