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Crime Chains

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  • Mehmet Bac

Abstract

How should law enforcement resources be allocated to minimize the harms from flexible, chain-form trafficking organizations? I show that optimal interventions focus on one target, the feeding source (decapitation) or the revenue-generating tail (amputation). Decapitation dismantles the crime chain under large budgets but induces maximal expansion otherwise, whereas amputation generates a rich set of detection outcomes and limits the chain's size response. A rule of thumb emerges for authorities to target tail segments under small budgets and high detection contiguity, qualified by chain profitability and enforcement parameters. Real-world interventions fail to coordinate on such efficient targeting.

Suggested Citation

  • Mehmet Bac, 2022. "Crime Chains," American Economic Journal: Microeconomics, American Economic Association, vol. 14(4), pages 680-722, November.
    • Handle: RePEc:aea:aejmic:v:14:y:2022:i:4:p:680-722
    DOI: 10.1257/mic.20200314
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    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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