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Does Crime Pay? A Classroom Demonstration of Monitoring and Enforcement

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Author Info
Lisa R. Anderson () (The College of William and Mary, Department of Economics)
Sarah L. Stafford () (The College of William and Mary, Department of Economics)

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Abstract

This article presents a classroom game in which students choose whether or not to comply with pollution regulations. By varying the level of monitoring and fines for noncompliance, the game shows students how the probability and severity of enforcement affects incentives for compliance. The game can be adapted for settings other than environmental regulation and can be used in a variety of classes including regulation, law and economics, environmental economics, public economics, or economics of crime classes. It can easily be conducted in a 50-minute class period.

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Publisher Info
Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 72 (2006)
Issue (Month): 4 (April)
Pages: 1016–1025
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Handle: RePEc:sej:ancoec:v:72:4:y:2006:p:1016-1025

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Web page: http://www.southerneconomic.org/
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Find related papers by JEL classification:
A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Anderson, Lisa R & Stafford, Sarah L, 2003. "Punishment in a Regulatory Setting: Experimental Evidence from the VCM," Journal of Regulatory Economics, Springer, vol. 24(1), pages 91-110, July. [Downloadable!] (restricted)
  2. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169. [Downloadable!] (restricted)
    Other versions:
  3. Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 37(1), pages 29-53, October. [Downloadable!] (restricted)
  4. Block, Michael K & Gerety, Vernon E, 1995. "Some Experimental Evidence on Differences between Student and Prisoner Reactions to Monetary Penalties and Risk," Journal of Legal Studies, University of Chicago Press, vol. 24(1), pages 123-38, January.
  5. James Andreoni & Brian Erard & Jonathan Feinstein, 1998. "Tax Compliance," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 818-860, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mitchell, David & Rebelein, Robert P. & Schneider, Patricia & Simpson, Nicole B. & Eric Fisher, . "A Classroom Experiment on Exchange Rate Determination with Purchasing Power Parity," Vassar College Department of Economics Working Paper Series 87, Vassar College Department of Economics. [Downloadable!]
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