Tempting Righteous Citizens? On the Counterintuitive Effects of Increasing Sanctions
AbstractThis 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 InfoPaper 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.
Length: 9 pages
Date of creation: 05 May 2011
Date of revision:
Find related papers by JEL classification:
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-24 (All new papers)
- NEP-CTA-2011-05-24 (Contract Theory & Applications)
- NEP-LAW-2011-05-24 (Law & Economics)
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