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Gangs and Crime Deterrence

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  • Abdala Mansour
  • Nicolas Marceau
  • Steeve Mongrain

Abstract

A framework is developed in which the formation of gangs--the criminal market structure--is endogenous. As in standard models of crime, under a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable circumstances, an increase in deterrence can lead to an increase in the number of competing criminal gangs and to an increase in total illegal output, possibly accompanied with a fall in the price. We show that an increase in demand can also modify the criminal market structure and can ultimately affect the output and the price in a similar way. Copyright 2006, Oxford University Press.

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Article provided by Oxford University Press in its journal The Journal of Law, Economics, and Organization.

Volume (Year): 22 (2006)
Issue (Month): 2 (October)
Pages: 315-339

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Handle: RePEc:oup:jleorg:v:22:y:2006:i:2:p:315-339

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  1. Sylvaine Poret, 2001. "The Illicit Drug Market : Paradoxical Effects of Law Enforcement Policies," Working Papers 2001-02, Centre de Recherche en Economie et Statistique.
  2. Syropoulos, C. & Skeperdas, S., 1993. "Gangs as Primitive States," Papers 10-93-25, Pennsylvania State - Department of Economics.
  3. Neher, Philip A, 1978. "The Pure Theory of the Muggery," American Economic Review, American Economic Association, vol. 68(3), pages 437-45, June.
  4. Nicolas Marceau & Gordon M. Myers, 2000. "From Foraging to Agriculture," Discussion Papers dp00-07, Department of Economics, Simon Fraser University, revised Feb 2000.
  5. Burbidge, John B. & James A. DePater & Gordon M. Meyers & Abhijit Sengupta, 1997. "A Coalition-Formation Approach to Equilibrium Federations and Trading Blocs," American Economic Review, American Economic Association, vol. 87(5), pages 940-56, December.
  6. Garoupa, Nuno, 2000. "The Economics of Organized Crime and Optimal Law Enforcement," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 278-88, April.
  7. Besley, Timothy, 1989. "Commodity taxation and imperfect competition : A note on the effects of entry," Journal of Public Economics, Elsevier, vol. 40(3), pages 359-367, December.
  8. Debraj Ray & Rajiv Vohra, 1996. "A Theory of Endogenous Coalition Structure," Papers 0068, Boston University - Industry Studies Programme.
  9. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
  10. Caulkins Jonathan P., 1995. "Domestic Geographic Variation in Illicit Drug Prices," Journal of Urban Economics, Elsevier, vol. 37(1), pages 38-56, January.
  11. repec:fth:simfra:00-7 is not listed on IDEAS
  12. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  13. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
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