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Stigma and Social Control

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  • Blume, Lawrence

    (Department of Economics, Cornell University)

Abstract

Social interactions provide a set of incentives for regulating individual behavior. Chief among these is stigma, the status loss and discrimination that results from the display of stigmatized attributes or behaviors. The stigmatization of behavior is the enforcement mechanism behind social norms. This paper models the incentive effects of stigmatization in the context of undertaking criminal acts. Stigma is a flow cost of uncertain duration which varies negatively with the number of stigmatized individuals. Criminal opportunities arrive randomly and an equilibrium model describes the conditions under which each individual chooses the behavior that, if detected, is stigmatized. The comparative static analysis of stigma costs differs from that of conventional penalties. One surprising result with important policy implications is that stigma costs of long duration will lead to increased crime rates.

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File URL: http://www.ihs.ac.at/publications/eco/es-119.pdf
File Function: First version, 2002
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Bibliographic Info

Paper provided by Institute for Advanced Studies in its series Economics Series with number 119.

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Length: 38 pages
Date of creation: Jul 2002
Date of revision:
Handle: RePEc:ihs:ihsesp:119

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Related research

Keywords: Crime; Stigma; Social norms;

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References

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  1. Frank A. Cowell, 1990. "Cheating the Government: The Economics of Evasion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262532484, December.
  2. Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January.
  3. Akihiko Matsui & Kiminori Matsuyama, 1991. "An Approach to Equilibrium Selection," Discussion Papers 1065, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  5. Lawrence E. Blume, 1995. "Evolutionary Equilibrium with Forward-Looking Players," Game Theory and Information 9509001, EconWPA.
  6. Blume,L. & Durlauf,S., 2002. "Equilibrium concepts for social interaction models," Working papers 7, Wisconsin Madison - Social Systems.
  7. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
  8. Blume Lawrence E., 1993. "The Statistical Mechanics of Strategic Interaction," Games and Economic Behavior, Elsevier, vol. 5(3), pages 387-424, July.
  9. Zhou Lin, 1994. "The Set of Nash Equilibria of a Supermodular Game Is a Complete Lattice," Games and Economic Behavior, Elsevier, vol. 7(2), pages 295-300, September.
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Citations

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Cited by:
  1. Alessandra Venturini, 2009. "Irregular Migration: Incentives and Institutional and Social Enforcement," RSCAS Working Papers carim2009/03, European University Institute.
  2. Robert Dur & Joël Van Der Weele, 2013. "Status-Seeking in Criminal Subcultures and the Double Dividend of Zero-Tolerance," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(1), pages 77-93, 02.
  3. Fafchamps, Marcel & Moser, Christine, 2004. "Crime, Isolation, and Law Enforcement," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Onur Ozgur & Alberto Bisin, 2011. "Dynamic linear economies with social interactions," Levine's Working Paper Archive 786969000000000036, David K. Levine.
  5. Çule, Monika & Fulton, Murray, 2009. "Business culture and tax evasion: Why corruption and the unofficial economy can persist," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 811-822, December.
  6. David Newbery, 2009. "Predicting Market Power in Wholesale Electricity Markets," EUI-RSCAS Working Papers 3, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  7. Luca Anderlini & Daniele Terlizzese, 2009. "Equilibrium Trust," EIEF Working Papers Series 0913, Einaudi Institute for Economics and Finance (EIEF), revised Dec 2009.
  8. Steven N. Durlauf & Marcel Fafchamps, 2004. "Social Capital," CSAE Working Paper Series 2004-14, Centre for the Study of African Economies, University of Oxford.
    • Durlauf, Steven N. & Fafchamps, Marcel, 2005. "Social Capital," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 26, pages 1639-1699 Elsevier.
  9. Cervellati, Matteo & Vanin, Paolo, 2013. "“Thou shalt not covet”: Prohibitions, temptation and moral values," Journal of Public Economics, Elsevier, vol. 103(C), pages 15-28.

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