Subgame Perfect Punishment for Repeat Offenders
AbstractFirst we show that for wealth-constrained agents who may commit an act twice, the optimal sanctions are the offender's entire wealth for the first crime, and zero for the second. Then we ask whether this decreasing sanction scheme is subgame perfect (time consistent), i.e., does a rent-seeking government stick to this sanction scheme after the first crime has occurred? If the benefit and/or the harm from the crime are not too large, this is indeed the case; otherwise, equal sanctions for both crimes are optimal.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3667.
Date of creation: Nov 2002
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
This paper has been announced in the following NEP Reports:
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.:
- Nuno Garoupa & Daniel Klerman, 2002. "Optimal Law Enforcement with a Rent-Seeking Government," American Law and Economics Review, Oxford University Press, vol. 4(1), pages 116-140, January.
- Steven Shavell & A. Mitchell Polinsky, 2000.
"The Economic Theory of Public Enforcement of Law,"
Journal of Economic Literature,
American Economic Association, vol. 38(1), pages 45-76, March.
- Burnovski, Moshe & Safra, Zvi, 1994. "Deterrence effects of sequential punishment policies: Should repeat offenders be more severely punished?," International Review of Law and Economics, Elsevier, vol. 14(3), pages 341-350, September.
- Boadway, Robin & Keen, Michael, 1998.
"Evasion and Time Consistency in the Taxation of Capital Income,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 461-76, May.
- Robin Boadway & Michael Keen, 1993. "Evasion and time consistency in the taxation of capital income," IFS Working Papers W93/20, Institute for Fiscal Studies.
- Robin W. Boadway & Michael Keen, 1993. "Evasion and Time Consistency in the Taxation of Capital Income," Working Papers 890, Queen's University, Department of Economics.
- Miceli Thomas J., 2012.
"Deterred or Detained? A Unified Model of Criminal Punishment,"
Review of Law & Economics,
De Gruyter, vol. 8(1), pages 1-20, March.
- Thomas J. Miceli, 2009. "Deterred or Detained? A Unified Model of Criminal Punishment," Working papers 2009-16, University of Connecticut, Department of Economics.
- Winand Emons, .
"Escalating Penalties for Repeat Offenders,"
American Law & Economics Association Annual Meetings
1005, American Law & Economics Association.
- Loss, Frederic & Malavolti-Grimal, Estelle & Verge, Thibaud & Berges-Sennou, Fabian, 2008.
"European competition policy modernization: From notifications to legal exception,"
European Economic Review,
Elsevier, vol. 52(1), pages 77-98, January.
- Frédéric Loss & Estelle Malavolti-Grimal & Thibaud Vergé & Fabian Bergès-Sennou, 2005. "European Competition Policy Modernization : From Notifications to Legal Exception," Working Papers 2005-38, Centre de Recherche en Economie et Statistique.
- Mungan, Murat C., 2010. "Repeat offenders: If they learn, we punish them more severely," International Review of Law and Economics, Elsevier, vol. 30(2), pages 173-177, June.
- Matthew Baker & Thomas Miceli, 2005.
"Credible Criminal Enforcement,"
European Journal of Law and Economics,
Springer, vol. 20(1), pages 5-15, July.
- Thomas J. Miceli, 2009. "Deterrence and Incapacitation Models of Criminal Punishment: Can the Twain Meet?," Working papers 2009-25, University of Connecticut, Department of Economics.
- Thomas J. Miceli & Catherine Bucci, 2004.
"A Simple Theory of Increasing Penalties for Repeat Offenders,"
2004-39, University of Connecticut, Department of Economics.
- Miceli Thomas J. & Bucci Catherine, 2005. "A Simple Theory of Increasing Penalties for Repeat Offenders," Review of Law & Economics, De Gruyter, vol. 1(1), pages 71-80, April.
- Rousseau, Sandra, 2009. "The use of warnings in the presence of errors," International Review of Law and Economics, Elsevier, vol. 29(3), pages 191-201, September.
- Bergès, Fabian & Loss, Frédéric & Malavolti, Estelle & Vergé, Thibaud, 2008. "European Competition Policy Modernization: From Notification to Legal Exception," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Tim Friehe, 2009. "Escalating penalties for repeat offenders: a note on the role of information," Journal of Economics, Springer, vol. 97(2), pages 165-183, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.