How prize valuation could strengthen or weaken incentives

After the capture of L'Insurgente came the administrative question of what the prize was worth. The United States Navy reduced its valuation from 120,000 dollars to 84,000 dollars after the crew had risked their lives to secure it. Royal Navy practice offered a contrast because an agreed price was paid without a later attempt to negotiate it downward. Predictable valuation encouraged captors to preserve a prize and present it in the best possible condition. Prize money was a concrete personnel and acquisition policy as well as a reward for a successful action.