Ballester, Coralio (Universitat Autònoma de Barcelona) Calvó-Armengol, Antoni () (Department of Economics) Zenou, Yves () (The Research Institute of Industrial Economics)
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Criminals are embedded in a network of relationships. Social ties among criminals are modeled by means of a graph where criminals compete for a booty and benefit from local interactions with their neighbours. Each criminal decides in a non-cooperative way how much crime effort he will exert. We show that the Nash equilibrium crime effort of each individual is proportional to his equilibrium Bonacich-centrality in the network, thus establishing a bridge to the sociology literature on social networks. We then analyze 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 his 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 Research Institute of Industrial Economics in its series Working Paper Series with number
617.
Length: 29 pages Date of creation: 29 Mar 2004 Date of revision: Handle: RePEc:hhs:iuiwop:0617
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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
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Thierry Verdier & Yves Zenou, 2004.
"Racial Beliefs, Location, And The Causes Of Crime,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 731-760, 08.
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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.
[Downloadable!] (restricted)
Edward L. Glaeser & Bruce I. Sacerdote & Jose A. Scheinkman, 2002.
"The Social Multiplier,"
NBER Working Papers
9153, National Bureau of Economic Research, Inc.
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