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Rewarding Policemen Increases Crime. Another Surprising Result from the Inspection Game

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  • Luciano Andreozzi

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Abstract

Inspection games are 2x2 games in which one playermust decide whether to inspect the other player, who in turnmust decide whether to infringe a norm or a regulation.Inspection games have a single, mixed strategy Nashequilibrium, which has counter-intuitive comparative staticsproperties. This result has been used by Tsebelis (1989) andHoller (1992) to show that the economic approach to lawenforcement is not likely to generate clear-cut predictions.In this paper I discuss a variant of the inspection game inwhich the inspector can act as a Stackelberg leader. I willalso show that this version of the inspection game hascounter-intuitive comparative statics properties. Inparticular, increasing inspector’s incentives to enforce thelaw increases the frequency of law infractions. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Luciano Andreozzi, 2004. "Rewarding Policemen Increases Crime. Another Surprising Result from the Inspection Game," Public Choice, Springer, vol. 121(1), pages 69-82, October.
    • Handle: RePEc:kap:pubcho:v:121:y:2004:i:1:p:69-82
    DOI: 10.1007/s11127-004-6166-x
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    References listed on IDEAS

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    Cited by:

    1. Fandel, G. & Trockel, J., 2013. "Avoiding non-optimal management decisions by applying a three-person inspection game," European Journal of Operational Research, Elsevier, vol. 226(1), pages 85-93.
    2. 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.
    3. A. Antoci & S. Borghesi & G. Iannucci, 2016. "Green licenses and environmental corruption: a random matching model," Working Paper CRENoS 201615, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    4. Daniel G. Arce & Walter Enders & Gary A. Hoover, 2008. "Plagiarism And Its Impact On The Economics Profession," Bulletin of Economic Research, Wiley Blackwell, vol. 60(3), pages 231-243, July.
    5. Pradiptyo Rimawan, 2007. "Does Punishment Matter? A Refinement of the Inspection Game," Review of Law & Economics, De Gruyter, vol. 3(2), pages 197-219, August.
    6. Dominic Spengler, 2012. "Endogenising Detection in an Asymmetric Penalties Corruption Game," Discussion Papers 12/20, Department of Economics, University of York.
    7. Ehud Guttel & Barak Medina, 2007. "Less Crime, More (Vulnerable) Victims: Game Theory and the Distributional Effects of Criminal Sanctions," Levine's Bibliography 122247000000001799, UCLA Department of Economics.
    8. Buechel, Berno & Emrich, Eike & Pohlkamp, Stefanie, 2013. "Nobody's innocent: the role of customers in the doping dilemma," MPRA Paper 44627, University Library of Munich, Germany.
    9. Luciano Andreozzi, 2008. "Inspection games with long-run inspectors," Department of Economics Working Papers 0821, Department of Economics, University of Trento, Italia.
    10. Rimawan Pradiptyo, 2015. "A Certain Uncertainty; Assessment of Court Decisions in Tackling Corruption in Indonesia," World Scientific Book Chapters, in: CORRUPTION, GOOD GOVERNANCE and ECONOMIC DEVELOPMENT Contemporary Analysis and Case Studies, chapter 10, pages 167-215, World Scientific Publishing Co. Pte. Ltd..
    11. Manfred J. Holler & Barbara Klose-Ullmann, 2008. "Wallenstein’s Power Problem and Its Consequences," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 2(3), pages 197-218, December.
    12. repec:bla:ecorec:v:93:y:2017:i:301:p:277-301 is not listed on IDEAS
    13. Daniel G. Arce, 2007. "Is Agency Theory Self‐Activating?," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 708-720, October.
    14. Arce, Daniel G., 2010. "Corporate virtue: Treatment of whistle blowers and the punishment of violators," European Journal of Political Economy, Elsevier, vol. 26(3), pages 363-371, September.
    15. John Bone & Dominic Spengler, 2014. "Does Reporting Decrease Corruption?," Journal of Interdisciplinary Economics, , vol. 26(1-2), pages 161-186, January.
    16. Spengler Dominic, 2014. "Endogenous Detection of Collaborative Crime: The Case of Corruption," Review of Law & Economics, De Gruyter, vol. 10(2), pages 1-17, July.
    17. Kirstein, Roland, 2005. "Bayesian Monitoring," CSLE Discussion Paper Series 2005-06, Saarland University, CSLE - Center for the Study of Law and Economics.
    18. Tim Friehe, 2008. "Correlated payoffs in the inspection game: some theory and an application to corruption," Public Choice, Springer, vol. 137(1), pages 127-143, October.
    19. repec:ksa:szemle:1758 is not listed on IDEAS
    20. Bruni, Camilla & Nuño, Juan Carlos & Primicerio, Mario, 2013. "What if criminals optimize their choice? Optimal strategies to defend public goods," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(4), pages 840-850.
    21. repec:eee:ejores:v:274:y:2019:i:2:p:627-637 is not listed on IDEAS
    22. Manfred J. Holler, 2013. "On Machiavelli’s conspiracy paradoxes," Chapters, in: Francisco Cabrillo & Miguel A. Puchades-Navarro (ed.), Constitutional Economics and Public Institutions, chapter 7, pages 125-145, Edward Elgar Publishing.
    23. Ehud Guttel & Barak Medina, 2007. "Less Crime, More (Vulnerable) Victims: Game Theory and the Distributional Effects of Criminal Sanctions," Discussion Paper Series dp472, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    24. repec:kap:theord:v:85:y:2018:i:3:d:10.1007_s11238-018-9669-5 is not listed on IDEAS

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