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Public Order and Private Payments: Paying for Police Services at Events

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Author Info

  • Nyberg, Sten

    ()
    (Dept. of Economics, Stockholm University)

  • Priks, Mikael

    ()
    (Dept. of Economics, Stockholm University)

Abstract

Should organizers of events, such as sport games or concerts, share the costs of maintaining public order in connection to the events? This question has been hotly debated in many countries, especially in connection to soccer hooliganism. Critics argue that organizers should do more to combat unruly behavior, which has significant external effects. The incentive to do so may be muted by the possibility of free riding on the police. We model how co-payments can address the under-provision of security on the part of organizers. However, it has been claimed that co-payments can backfire and lead financially constrained organizers to instead provide less, not more, security. We analyze under which circumstances this may be true. Finally, we exploit a natural experiment from the Swedish soccer league where police payments were introduced for some clubs only. The results are in line with the implications of the model.

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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2014:3.

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Length: 28 pages
Date of creation: 10 Apr 2014
Date of revision:
Handle: RePEc:hhs:sunrpe:2014_0003

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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Related research

Keywords: Public order; private security; public events; co-payments for police; free-riding; externality; hooliganism; natural experiment;

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References

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  1. Marie Olivier, 2010. "Police and Thieves in the Stadium: Measuring the (Multiple) Effects of Football Matches on Crime," Research Memorandum 044, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  2. Stigler, George J, 1970. "The Optimum Enforcement of Laws," Journal of Political Economy, University of Chicago Press, vol. 78(3), pages 526-36, May-June.
  3. Sloane, Peter J, 1971. "The Economics of Professional Football: The Football Club as a Utility Maximiser," Scottish Journal of Political Economy, Scottish Economic Society, vol. 18(2), pages 121-46, June.
  4. Andrew Zimbalist, 2003. "Sport as Business," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 503-511, Winter.
  5. Poutvaara, Panu & Priks, Mikael, 2009. "The effect of police intelligence on group violence: Evidence from reassignments in Sweden," Munich Reprints in Economics 19791, University of Munich, Department of Economics.
  6. A. Mitchell Polinsky & Steven Shavell, 1999. "The Economic Theory of Public Enforcement of Law," NBER Working Papers 6993, National Bureau of Economic Research, Inc.
  7. Mikael Priks, 2008. "Do Surveillance Cameras Affect Unruly Behavior? A Close Look at Grandstands," CESifo Working Paper Series 2289, CESifo Group Munich.
  8. Pedro Garcia-del-Barrio & Stefan Szymanski, 2009. "Goal! Profit Maximization Versus Win Maximization in Soccer," Review of Industrial Organization, Springer, vol. 34(1), pages 45-68, February.
  9. Scott E. Atkinson & Linda R. Stanley & John Tschirhart, 1988. "Revenue Sharing as an Incentive in an Agency Problem: An example from the National Football League," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 27-43, Spring.
  10. Mikael Priks, 2013. "Singin' in the Rain: A Study of Social Pressure on the Soccer Field," CESifo Working Paper Series 4481, CESifo Group Munich.
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