A model of optimal fines for repeat offenders
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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- Gary S. Becker, 1968.
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University of Chicago Press, vol. 76, pages 169-169.
- Landsberger, Michael & Meilijson, Isaac, 1982. "Incentive generating state dependent penalty system : The case of income tax evasion," Journal of Public Economics, Elsevier, vol. 19(3), pages 333-352, December.
- George J. Stigler, 1974.
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in: Essays in the Economics of Crime and Punishment, pages 55-67
National Bureau of Economic Research, Inc.
- Steven Shavell, 1989.
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NBER Working Papers
3062, National Bureau of Economic Research, Inc.
- Rubinstein, Ariel, 1980. "On an anomaly of the deterrent effect of punishment," Economics Letters, Elsevier, vol. 6(1), pages 89-94.
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