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Gangs and Crime Deterrence

  • Abdala Mansour
  • Nicolas Marceau
  • Steeve Mongrain

A framework is developed in which the formation of gangs--the criminal market structure--is endogenous. As in standard models of crime, under a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable circumstances, an increase in deterrence can lead to an increase in the number of competing criminal gangs and to an increase in total illegal output, possibly accompanied with a fall in the price. We show that an increase in demand can also modify the criminal market structure and can ultimately affect the output and the price in a similar way. Copyright 2006, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/jleo/ewj015
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Article provided by Oxford University Press in its journal The Journal of Law, Economics, and Organization.

Volume (Year): 22 (2006)
Issue (Month): 2 (October)
Pages: 315-339

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Handle: RePEc:oup:jleorg:v:22:y:2006:i:2:p:315-339
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  1. Garoupa, Nuno, 2000. "The Economics of Organized Crime and Optimal Law Enforcement," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 278-88, April.
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  7. Nicolas Marceau & Gordon M. Myers, 2000. "From Foraging to Agriculture," Discussion Papers dp00-07, Department of Economics, Simon Fraser University, revised Feb 2000.
  8. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169.
  9. Debraj Ray & Rajiv Vohra, 1996. "A Theory of Endogenous Coalition Structure," Papers 0068, Boston University - Industry Studies Programme.
  10. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
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