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Optimal Law Enforcement and Victim Precaution

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  • Keith N. Hylton
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    Abstract

    In this I article derive the relationship between the optimal penalty and the probability of apprehension when victim precaution is taken into account. I show that in the area of intentional offenses, the optimal penalty is less than the level that internalizes the victim's harm plus the state's cost of enforcement.

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    File URL: http://links.jstor.org/sici?sici=0741-6261%28199621%2927%3A1%3C197%3AOLEAVP%3E2.0.CO%3B2-N&origin=repec
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    Bibliographic Info

    Article provided by The RAND Corporation in its journal RAND Journal of Economics.

    Volume (Year): 27 (1996)
    Issue (Month): 1 (Spring)
    Pages: 197-206

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    Handle: RePEc:rje:randje:v:27:y:1996:i:spring:p:197-206

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    Cited by:
    1. Keith N. Hylton & Haizhen Lin, 2008. "Innovation and Optimal Punishment, with Antitrust Applications," Working Papers 2008-09, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    2. Clements, Matthew T., 2003. "Precautionary incentives for privately informed victims," International Review of Law and Economics, Elsevier, vol. 23(3), pages 237-251, September.
    3. Jensen, Sissel & Kvaløy, Ola & Olsen, Trond & Sørgard, Lars, 2013. "Crime and punishment: When tougher antitrust enforcement leads to higher overcharge," UiS Working Papers in Economics and Finance 2013/2, University of Stavanger.
    4. Florian Baumann & Tim Friehe, 2012. "Private Protection against Crime when Property Value is Private Information," CESifo Working Paper Series 3888, CESifo Group Munich.
    5. Francesco Parisi & Jonathan Klick & Nuno Garoupa, 2006. "A Law and Economics Perspective on Terrorism," Working Papers 2006-09, FEDEA.
    6. Konrad, Kai A & Skaperdas, Stergios, 1999. "The Market for Protection and the Origin of the State," CEPR Discussion Papers 2173, C.E.P.R. Discussion Papers.
    7. Philip A. Curry & Matthew Doyle, 2012. "Social Welfare and the Benefits to Crime," Working Papers 1205, University of Waterloo, Department of Economics, revised Jul 2012.
    8. Saha, Atanu & Poole, Graham, 2000. "The economics of crime and punishment: An analysis of optimal penalty," Economics Letters, Elsevier, vol. 68(2), pages 191-196, August.

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