Investment decision model of crime prevention system based on expected monetary values of the economic loss caused by risks

Abstract

In recent years more and more cities are planning to construct crime preventing systems in order to reduce the loss caused by risks. There are many kinds of crime preventing systems with different variety and price in the market so far. It is the problem that each decision-maker faces jointly that how to select a crime preventing system for a city which would be a perfect fit. From the stand point of decision-makers, this paper proposed an investment decision-making model for the construction of crime preventing systems. This model measures the quality of a crime prevention system through expected monetary values of the economic loss caused by risks. This article also introduced two decision-making methods, which were optimistic rule and pessimistic rule. Finally this paper proved the model reasonable through an actual application.