Criminals are embedded in a network of relationships. Social ties among criminals are modelled by means of a graph where criminals compete for a bounty and benefit from local interactions with their neighbours. Each criminal decides in a non-cooperative way how much crime effort they will exert. We show that the Nash equilibrium crime effort of each individual is proportional to their equilibrium Bonacich-centrality in the network, thus establishing a bridge to the sociology literature on social networks. We then analyse a policy that consists of finding and getting rid of the key player, that is, the criminal who, once removed, leads to the maximum reduction in aggregate crime. We provide a geometric characterization of the key player identified with an optimal inter-centrality measure, which takes into account both a player’s centrality and their contribution to the centrality of the others. We also provide a geometric characterization of the key group, which generalizes the key player for a group of criminals of a given size. We finally endogeneize the crime participation decision, resulting in a key player policy, which effectiveness depends on the outside opportunities available to criminals.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
4421.
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
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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.
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