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Delinquent Networks

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Author Info
Ballester, Coralio
Calvó-Armengol, Antoni
Zenou, Yves

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Abstract

Delinquents are embedded in a network of relationships. Social ties among delinquents are modelled by means of a graph where delinquents compete for a booty and benefit from local interactions with their neighbors. Each delinquent decides in a non-cooperative way how much delinquency effort he will exert. Using the network model developed by Ballester et al. (2006), we characterize the Nash equilibrium and derive an optimal enforcement policy, called the key-player policy, which targets the delinquent who, once removed, leads to the highest aggregate delinquency reduction. We then extend our characterization of optimal single player network removal for delinquency reduction, the key player, to optimal group removal, the key group. We also characterize and derive a policy that targets links rather than players. Finally, we endogenize the network connecting delinquents by allowing players to join the labor market instead of committing delinquent offenses. The key-player policy turns out to be much more complex since it depends on wages and on the structure of the network.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7293.

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Date of creation: May 2009
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Handle: RePEc:cpr:ceprdp:7293

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Related research
Keywords: Crime policies; Delinquency decision; Key group; NP-hard problem; Social networks;

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Find related papers by JEL classification:
A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
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
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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  1. Coralio Ballester & Pablo Brañas-Garza & María Paz Espinosa, 2008. "Peer effects in public contributions: theory and experimental evidence," ThE Papers 08/04, Department of Economic Theory and Economic History of the University of Granada.. [Downloadable!]
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This page was last updated on 2009-11-24.

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