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Strong Enforcement by a Weak Authority

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Abstract

This paper studies the enforcement abilities of authorities with a limited commitment to punishing violators. Commitment of resources su±cient to punish only one agent is needed to enforce high compliance of an arbitrary number of agents. Though existence of other, non-compliance equilibria is generally inevitable, there exist punishment rules suitable for a limited authority to assure that compliance prevails in the long run under stochastic evolution.

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Bibliographic Info

Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number 149.

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Length: 15
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:edn:esedps:149

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Keywords: Commitment; Enforcement; Punishment; Stochastic Evolution.;

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  1. Alm, James & McKee, Michael, 2004. "Tax compliance as a coordination game," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 54(3), pages 297-312, July.
  2. Michihiro Kandori, 2002. "The Erosion and Sustainability of Norms and Morale," Levine's Working Paper Archive 506439000000000030, David K. Levine.
  3. M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
  4. Ellison, Glenn, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 67(1), pages 17-45, January.
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Cited by:
  1. repec:ebl:ecbull:v:8:y:2007:i:1:p:1-4 is not listed on IDEAS
  2. Jakub Steiner, 2007. "A trace of anger is enough: on the enforcement of social norms," Economics Bulletin, AccessEcon, vol. 8(1), pages 1-4.

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