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Making space for crime: A spatial analysis of criminal competition

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  • DeAngelo, Gregory

Abstract

This paper utilizes a spatial competition model to analyze criminal activity. Criminals are heterogeneous in their cost of providing illegal goods and compete by choosing a location and a price for the distribution of the illegal goods to clients. The locational choice of criminals and law enforcement technology are permitted to interact and the spatial equilibrium of criminals is determined. A particularly striking finding is that an increase in law enforcement effort can increase the market share of criminals by forcing low productivity criminals out of the market, thereby allowing fewer criminals to serve the inelastic demands of the illegal goods market.

Suggested Citation

  • DeAngelo, Gregory, 2012. "Making space for crime: A spatial analysis of criminal competition," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 42-51.
  • Handle: RePEc:eee:regeco:v:42:y:2012:i:1:p:42-51
    DOI: 10.1016/j.regsciurbeco.2011.04.008
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    Keywords

    Spatial/imperfect competition; Industrial organization; Enforcement; Hotelling; Crime; Criminal organizations;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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