Delinquents compete with each other in criminal activities but benefit from being friends with other criminals by learning and acquiring proper know-how on the crime business. We study the subgame-perfect Nash equilibrium of this game in which individuals decide first to work or to become a criminal and then the crime effort provided if criminals. We show that multiple equilibria with different numbers of active criminals and levels of involvement in crime activities may coexist and are only driven by the geometry of the pattern of links connecting criminals. Copyright 2004 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.
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Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
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Thierry Verdier & Yves Zenou, 2004.
"Racial Beliefs, Location, And The Causes Of Crime,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 731-760, 08.
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Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995.
"Crime and Social Interactions,"
NBER Working Papers
5026, National Bureau of Economic Research, Inc.
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Chien-Chieh Huang & Derek Laing & Ping Wang, 2004.
"Crime And Poverty: A Search-Theoretic Approach,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 909-938, 08.
[Downloadable!] (restricted)
Edward L. Glaeser & Bruce I. Sacerdote & Jose A. Scheinkman, 2002.
"The Social Multiplier,"
NBER Working Papers
9153, National Bureau of Economic Research, Inc.
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