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Does Crime Pay? A Classroom Demonstration of Monitoring and Enforcement

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Author Info

  • Lisa R. Anderson

    ()
    (Department of Economics, College of William and Mary)

  • Sarah L. Stafford

    ()
    (Department of Economics, College of William and Mary)

Abstract

This paper presents a classroom game in which students choose whether or not to comply with pollution regulations. By changing the level of monitoring and fines for noncompliance across periods, 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 the economics of crime. It can easily be conducted in a fifty-minute class period.

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File URL: http://economics.wm.edu/wp/cwm_wp17.pdf
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Bibliographic Info

Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number 17.

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Length: 16 pages
Date of creation: 12 May 2005
Date of revision:
Handle: RePEc:cwm:wpaper:17

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Web page: http://www.wm.edu/economics/
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Keywords: Classroom Experiment; Non-Compliance; Pollution;

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  1. James Andreoni & Brian Erard & Jonathan Feinstein, 1998. "Tax Compliance," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 818-860, June.
  2. 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.
  3. Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 37(1), pages 29-53, October.
  4. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169.
  5. Block, Michael K & Gerety, Vernon E, 1995. "Some Experimental Evidence on Differences between Student and Prisoner Reactions to Monetary Penalties and Risk," The Journal of Legal Studies, University of Chicago Press, vol. 24(1), pages 123-38, January.
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Cited by:
  1. David T. Mitchell & Robert P. Rebelein & Patricia H. Schneider & Nicole B. Simpson & Eric Fisher, 2009. "A Classroom Experiment on Exchange Rate Determination with Purchasing Power Parity," The Journal of Economic Education, Taylor & Francis Journals, vol. 40(2), pages 150-165, April.

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