This paper analyzes optimal fines in a model in which individuals can commit up to two offenses. The fine for the second offense is allowed to differ from the fine for the first offense. There are four natural cases in the model, defined by assumptions about the gains to individuals from committing the offense. In the case fully analyzed it may be optimal to punish repeat offenders more severely than first-time offenders. In another case, it may be optimal to impose less severe penalties on repeat offenders. And in the two remaining cases, the optimal penalty does not change.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
3739.
Length: Date of creation: Nov 1993 Date of revision: Handle: RePEc:nbr:nberwo:3739
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Find related papers by JEL classification: K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
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.:
George J. Stigler, 1974.
"The Optimum Enforcement of Laws,"
NBER Chapters,
in: Essays in the Economics of Crime and Punishment, pages 55-67
National Bureau of Economic Research, Inc.
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