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Individual Protection Against Property Crime: Decomposing the Effects of Protection Observability

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  • Hotte, Louis
  • van Ypersele, Tanguy

Abstract

We revisit the question of the efficiency of individual decisions to be protected against crime for the cases of both observable and unobservable protection. We obtain that observable protection is unambiguously associated with a negative externality and that at the individual level, it has a deterrence effect but no payoff reduction effect. Unobservable protection has a global deterrence effect and is associated with a private payoff reduction effect but no private deterrence effect. A decrease in the global crime payoff is detrimental to a victim if protection is observable, while it is beneficial with unobservable protection. While protection has a positive diversion effect when observable, it has the equivalent of a negative diversion effect when unobservable.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5293.

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Date of creation: Oct 2005
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Handle: RePEc:cpr:ceprdp:5293

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Keywords: crime; efficiency; private protection;

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Cited by:
  1. Nicolas Marceau & Steeve Mongrain, 2004. "Competition in Law Enforcement and Capital Allocation," Cahiers de recherche 0408, CIRPEE.
  2. 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.

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