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Detection Avoidance and Deterrence: Some Paradoxical Arithmetic

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  • ERIC LANGLAIS

Abstract

This paper extends Malik's analysis to the case where criminals' avoidance efforts and public expenditures in the detection of criminals are strategic complements in the aggregate technology of control of illegal behaviors. In this set up, we show that whenever criminals' avoidance efforts are more sensitive to the frequency than to the severity of sanctions, it is always socially efficient to set the fine at the maximal possible level. However, several paradoxical consequences occur: there may exist overdeterrence at optimum; more repressive policies lead to fewer arrests of offenders while more crimes may be committed; at the same time, the society may be closer to the first best number of crimes.

Suggested Citation

  • Eric Langlais, 2008. "Detection Avoidance and Deterrence: Some Paradoxical Arithmetic," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(3), pages 371-382, June.
    • Handle: RePEc:bla:jpbect:v:10:y:2008:i:3:p:371-382
    DOI: 10.1111/j.1467-9779.2008.00367.x
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    1. Garoupa, Nuno, 2001. "Optimal magnitude and probability of fines," European Economic Review, Elsevier, vol. 45(9), pages 1765-1771, October.
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    Cited by:

    1. Mungan, Murat C. & Samuel, Andrew, 2019. "Mimicking, errors, and the optimal standard of proof," Economics Letters, Elsevier, vol. 174(C), pages 18-21.
    2. Wielhouwer, Jacco L., 2013. "When is public enforcement of insider trading regulations effective?," International Review of Law and Economics, Elsevier, vol. 34(C), pages 52-60.
    3. Chopard, Bertrand & Langlais, Eric, 2009. "Défaut de paiement stratégique et loi sur les défaillances d'entreprises [Strategic default and bankruptcy law]," MPRA Paper 14366, University Library of Munich, Germany.
    4. Jensen, Sissel & Kvaløy, Ola & Olsen, Trond E. & Sørgard, Lars, 2013. "Crime and punishment: When tougher antitrust enforcement leads to higher overcharge," Discussion Papers 2013/5, Norwegian School of Economics, Department of Business and Management Science.
    5. Tim Friehe & Thomas J. Miceli, 2017. "On Punishment Severity and Crime Rates," American Law and Economics Review, Oxford University Press, vol. 19(2), pages 464-485.
    6. Eric Langlais, 2009. "On the Ambiguous Effects of Repression," Annals of Economics and Statistics, GENES, issue 93-94, pages 327-348.
    7. Friehe, Tim, 2009. "Precaution v. avoidance: A comparison of liability rules," Economics Letters, Elsevier, vol. 105(3), pages 214-216, December.
    8. Friehe, Tim & Utikal, Verena, 2018. "Intentions under cover – Hiding intentions is considered unfair," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 73(C), pages 11-21.
    9. Buechel, Berno & Feess, Eberhard & Muehlheusser, Gerd, 2020. "Optimal law enforcement with sophisticated and naïve offenders," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 836-857.
    10. Ken Yahagi, 2018. "Private law enforcement with competing groups," Economics of Governance, Springer, vol. 19(3), pages 285-297, August.
    11. Tim Friehe & Thomas J. Miceli, 2018. "On the role of the exclusionary rule for optimal law enforcement effort," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(5), pages 757-767, October.
    12. Dechenaux, Emmanuel & Samuel, Andrew, 2014. "Announced vs. surprise inspections with tipping-off," European Journal of Political Economy, Elsevier, vol. 34(C), pages 167-183.
    13. Florian Baumann & Tim Friehe, 2014. "Regulating harmless activity to fight crime," Journal of Economics, Springer, vol. 113(1), pages 79-95, September.

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    More about this item

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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