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Tempting Righteous Citizens? On the Counterintuitive Effects of Increasing Sanctions

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  • Tim Friehe

    ()
    (Department of Economics, University of Konstanz, Germany)

Abstract

This paper demonstrates that increasing the expected sanctions for a crime may increase this crime's prevalence, using a principal-agent model with different crimes. The intuition is that the policy change may increase the principal's expected payoff from crime by decreasing the information rent required by the agent.

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Bibliographic Info

Paper provided by Department of Economics, University of Konstanz in its series Working Paper Series of the Department of Economics, University of Konstanz with number 2011-09.

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Length: 9 pages
Date of creation: 05 May 2011
Date of revision:
Handle: RePEc:knz:dpteco:1109

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Related research

Keywords: Crime; principal-agent relation; information rent;

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