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Tempting righteous citizens? Counterintuitive effects of increasing sanctions in the realm of organized crime

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  • Friehe, Tim

Abstract

This paper demonstrates that increasing the expected sanction for a crime may increase this crime's prevalence, using a principal–agent model with different kinds of crime that is typical of organized crime. The intuition for the finding is that the policy change may increase the principal's expected payoff from crime by decreasing the information rent required by the agent.

Suggested Citation

  • Friehe, Tim, 2013. "Tempting righteous citizens? Counterintuitive effects of increasing sanctions in the realm of organized crime," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 44(C), pages 37-40.
    • Handle: RePEc:eee:soceco:v:44:y:2013:i:c:p:37-40
    DOI: 10.1016/j.socec.2013.02.016
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    References listed on IDEAS

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    Cited by:

    1. Faria João Ricardo & Mixon Franklin G. & Upadhyaya Ashish & Upadhyaya Kamal P., 2019. "Gang Rivalry and Crime: A Differential Game Approach," Review of Law & Economics, De Gruyter, vol. 15(2), pages 1-30, July.
    2. Miles Stan & Pyne Derek, 2017. "The Economics of Scams," Review of Law & Economics, De Gruyter, vol. 13(1), pages 1-18, March.
    3. Giovanni Immordino & Salvatore Piccolo & Paolo Roberti, 2024. "Criminal network, leniency, and market externalities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(4), August.

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    Keywords

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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
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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