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Optimal Law Enforcement and Criminal Organization

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Author Info
Nuno Garoupa

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Abstract

In this paper, we take an organizational view of organized crime. In particular, we study the organizational consequences of product illegality attending at the following characteristics: (i) contracts are not enforceable in court, (ii) all participants are subject to the risk of being punished, (iii) employees present a major threat to the entrepreneur having the most detailed knowledge concerning participation, (iv) separation between ownership and management is difficult because record-keeping and auditing augments criminal evidence.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/366.pdf
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Publisher Info
Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 366.

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Date of creation: Mar 1999
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Handle: RePEc:upf:upfgen:366

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Web page: http://www.econ.upf.edu/

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Related research
Keywords: Organized crime; punishment; plea-bargaining;

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Find related papers by JEL classification:
K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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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.:
  1. Konrad, Kai A. & Skaperdas, Stergios, 1997. "Credible threats in extortion," Journal of Economic Behavior & Organization, Elsevier, vol. 33(1), pages 23-39, May. [Downloadable!] (restricted)
  2. Alexander, Barbara J, 1997. "The Rational Racketeer: Pasta Protection in Depression Era Chicago," Journal of Law & Economics, University of Chicago Press, vol. 40(1), pages 175-202, April.
  3. Skaperdas, S. & Syropoulos, C., 1993. "Gangs as Primitive States," Papers 92-93-13, California Irvine - School of Social Sciences.
    Other versions:
  4. A. Mitchell Polinsky & Steven Shavell, 1999. "The Economic Theory of Public Enforcement of Law," NBER Working Papers 6993, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Mathewson, G Frank & Winter, Ralph A, 1985. "The Economics of Franchise Contracts," Journal of Law & Economics, University of Chicago Press, vol. 28(3), pages 503-26, October.
  6. Klein, Benjamin & Murphy, Kevin M, 1997. "Vertical Integration as a Self-Enforcing Contractual Arrangement," American Economic Review, American Economic Association, vol. 87(2), pages 415-20, May. [Downloadable!] (restricted)
  7. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer, vol. 7(2), pages 283-90, February.
    Other versions:
  8. Garoupa, Nuno, 1997. " The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Blackwell Publishing, vol. 11(3), pages 267-95, September. [Downloadable!] (restricted)
  9. Arun S. Malik, 1990. "Avoidance, Screening and Optimum Enforcement," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 341-353, Autumn. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Hauret, Laetitia & Langlais, Eric & Sonntag, Carine, 2009. "On the deterrent effect of individual versus collective liability in criminal organizations," MPRA Paper 14762, University Library of Munich, Germany. [Downloadable!]
  2. Heski Bar-Isaac & Mariagiovanna Baccara, 2008. "Interrogation Methods and Terror Networks," Working Papers 08-8, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
  3. Vimal Kumar & Stergios Skaperdas, 2008. "On The Economics oF Organized Crime," Working Papers 070815, University of California-Irvine, Department of Economics. [Downloadable!]
  4. Slim, Sadri, 2009. "Du refus de vente au don: une explication de la formation du prix par l´affect
    [From rejection of exchange to gift: regard as an explanation of prices]    ," MPRA Paper 15317, University Library of Munich, Germany, revised 24 Apr 2009. [Downloadable!]
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This page was last updated on 2009-11-27.

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