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Sophisticated Enforcement And Adaptive Offenders

Author

Listed:
  • BRYAN C. McCANNON

    (Saint Bonaventure University, P.O. Box 42, Saint Bonaventure, NY 14778, USA)

Abstract

The interaction between a sophisticated player and a fictitious player is analyzed and applied to the problem of optimal enforcement. An adaptive potential offender myopically responds to the history of past enforcement. How can a sophisticated enforcement official take advantage of this behavior? Will compliance with the law be attained? Conditions under which full compliance arises is derived and the optimal cycle of enforcing and not enforcing the law is presented. Welfare is shown to be greater than if the offender was sophisticated as well.

Suggested Citation

  • BRYAN C. McCANNON, 2011. "Sophisticated Enforcement And Adaptive Offenders," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 235-246.
    • Handle: RePEc:wsi:igtrxx:v:13:y:2011:i:02:n:s0219198911002976
    DOI: 10.1142/S0219198911002976
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    More about this item

    Keywords

    Adaptive play; bounded rationality; deterrence; fictitious play; optimal enforcement; K42; D83;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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